(a) It is hereby
declared that unsanitary or unsafe dwelling accommodations exist in urban and
rural areas throughout the State and that such unsafe or unsanitary conditions
arise from overcrowding and concentration of population, the obsolete and poor
condition of the buildings, improper planning, excessive land coverage, lack of
proper light, air and space, unsanitary design and arrangement, lack of proper
sanitary facilities, and the existence of conditions which endanger life or
property by fire and other causes; that in such urban and rural areas many
persons of low income are forced to reside in unsanitary or unsafe dwelling
accommodations; that in such urban and rural areas there is a lack of safe or
sanitary dwelling accommodations available to all the inhabitants thereof and
that consequently many persons of low income are forced to occupy overcrowded
and congested dwelling accommodations; that these conditions cause an increase
in and spread of disease and crime and constitute a menace to the health,
safety, morals and welfare of the citizens of the State and impair economic
values; that these conditions cannot be remedied by the ordinary operation of
private enterprise; that the clearance, replanning and reconstruction of such
areas and the providing of safe and sanitary dwelling accommodations for
persons of low income are public uses and purposes for which public money may
be spent and private property acquired; that it is in the public interest that
work on such projects be instituted as soon as possible; and that the necessity
for the provisions hereinafter enacted is hereby declared as a matter of
legislative determination to be in the public interest.

(b) It is hereby
further declared that there is a serious shortage of decent, safe and sanitary
housing in North Carolina that can be afforded by persons and families of
moderate income; that it is in the best interest of the State to encourage
programs to provide housing for such persons without imposing on them undue
financial hardship; and that in undertaking such programs a housing authority
is promoting the health, welfare and prosperity of all citizens of the State
and is serving a public purpose for the benefit of the general public. (1935, c. 456, s. 2; 1938,
Ex. Sess., c. 2, s. 14; 1941, c. 78, s. 2; 1987, c. 464, s. 1.)

§ 157-3. Definitions.

The following terms, wherever
used or referred to in this Article shall have the following respective
meanings, unless a different meaning clearly appears from the context:

(1) "Authority"
or "housing authority" shall mean a public body and a body corporate
and politic organized in accordance with the provisions of this Article for the
purposes, with the powers and subject to the restrictions hereinafter set
forth.

(3) "City"
shall mean any city or town having a population of more than 500 inhabitants
according to the last federal census or any revision or amendment thereto.

(4) "City
clerk" and "mayor" shall mean the clerk and mayor, respectively,
of the city or the officers thereof charged with the duties customarily imposed
on the clerk and mayor respectively.

(5) "Commissioner"
shall mean one of the members of an authority appointed in accordance with the
provisions of this Article.

(6) "Community
facilities" shall include real and personal property, and buildings and
equipment for recreational or social assemblies, for educational, health or
welfare purposes and necessary utilities, when designed primarily for the
benefit and use of the housing authority and/or the occupants of the dwelling
accommodation.

(7) "Contract"
shall mean any agreement of an authority with or for the benefit of an obligee
whether contained in a resolution, trust indenture, mortgage, lease, bond or
other instrument.

(8) "Council"
shall mean the legislative body, council, board of commissioners, board of
trustees, or other body charged with governing the city.

(9) "Farmers of low
income" shall mean persons or families who at the time of their admission
to occupancy in a dwelling of the authority:

a. Live under unsafe or
unsanitary housing conditions;

b. Derive their
principal income from operating or working upon a farm; and

c. Had an aggregate
average annual net income for the three years preceding their admission that
was less than the amount that shall be determined by the authority to be
necessary, within its area of operation, to enable them, without financial
assistance, to obtain decent, safe and sanitary housing, without overcrowding.

(10) "Federal
government" shall include the United States of America, the Federal
Emergency Administration of Public Works or any agency, instrumentality,
corporate or otherwise, of the United States of America.

(11) "Government"
shall include the State and federal governments and any subdivision, agency or
instrumentality, corporate or otherwise, of either of them.

(12) "Housing
project" shall include all real and personal property, buildings and
improvements, stores, offices, lands for farming and gardening, and community
facilities acquired or constructed or to be acquired or constructed pursuant to
a single plan or undertaking:

b. To provide safe and
sanitary dwelling accommodations for persons of low income, or moderate income,
or low and moderate income; and/or

c. To provide safe and
sanitary housing for persons of low income, through payment of rent subsidies
from any source; and/or

d. To provide grants, loans,
interest supplements and other programs of financial assistance (including rent
subsidies in furtherance of a program of home ownership) to persons of low
income, or moderate income, or low and moderate income, so that such persons
may become owners of their own housing or rehabilitate their own housing;
and/or

e. To provide grants,
loans, interest supplements and other programs of financial assistance to
public or private developers of housing for persons of low income, or moderate
income, or low and moderate income.

"Housing
project" also includes any project that provides housing for persons of
other than low or moderate income, as long as at least twenty percent (20%) of
the units in the project are set aside for the exclusive use of persons of low
income.

The term
"housing project" may also be applied to the planning of the
buildings and improvements, the acquisition of property, the demolition of
existing structures, the construction, reconstruction, alteration and repair of
the improvements and all other work in connection therewith.

(13) "Mortgage"
shall include deeds of trust, mortgages, building and loan contracts or other
instruments conveying real or personal property as security for bonds and
conferring a right to foreclose and cause a sale thereof.

(14) "Municipality"
shall mean any city, town, incorporated village or other municipality in the
State.

(15) "Obligee of the
authority" or "obligee" shall include any bondholder, trustee or
trustees for any bondholders, any lessor demising property to the authority
used in connection with a housing project or any assignee or assignees of such
lessor's interest or any part thereof, and the United States of America, when
it is a party to any contract with the authority.

(15a) "Persons of low
income" means persons in households the annual income of which, adjusted
for family size, is not more than sixty percent (60%) of the local area median
family income as defined by the most recent figures published by the U.S.
Department of Housing and Urban Development.

(15b) "Persons of
moderate income" means persons deemed by the authority to require the
assistance made available pursuant to this Chapter on account of insufficient
personal or family income taking into consideration, without limitation, (i)
the amount of the total income of such persons and families available for
housing needs, (ii) the size of the person's family, (iii) the cost and
condition of housing facilities available, and (iv) the eligibility of such
persons and families for federal housing assistance of any type predicated upon
a moderate or low and moderate income basis.

(16) "Real
property" shall include lands, lands under water, structures, and any and
all easements, franchises and incorporeal hereditaments and every estate and
right therein, legal and equitable, including terms for years and liens by way
of judgment, mortgage or otherwise.

§ 157-4. Notice, hearing and
creation of authority; cancellation of certificate of incorporation.

Any 25 residents of a city and
of the area within 10 miles from the territorial boundaries thereof may file a
petition with the city clerk setting forth that there is a need for an
authority to function in the city and said surrounding area. Upon the filing of
such a petition the city clerk shall give notice of the time, place and
purposes of a public hearing at which the council will determine the need for
an authority in the city and said surrounding area. Such notice shall be given
at the city's expense by publishing a notice, at least 10 days preceding the
day on which the hearing is to be held, in a newspaper having a general
circulation in the city and said surrounding area, or, if there be no such
newspaper, by posting such notice in at least three public places within the
city, at least 10 days preceding the day on which the hearing is to be held.

Upon the date fixed for said
hearing held upon notice as provided herein, an opportunity to be heard shall
be granted to all residents and taxpayers of the city and said surrounding area
and to all other interested persons. After such a hearing, the council shall
determine:

(1) Whether insanitary
or unsafe inhabited dwelling accommodations exist in the city and said
surrounding area, and/or

(2) Whether there is a
lack of safe or sanitary dwelling accommodations in the city and said
surrounding area available for all the inhabitants thereof.

In determining whether
dwelling accommodations are unsafe or insanitary, the council shall take into
consideration the following: the physical condition and age of the buildings;
the degree of overcrowding; the percentage of land coverage; the light and air
available to the inhabitants of such dwelling accommodations; the size and
arrangement of the rooms; the sanitary facilities; and the extent to which
conditions exist in such buildings which endanger life or property by fire or
other causes.

If it shall determine that
either or both of the above enumerated conditions exist, the council shall
adopt a resolution so finding (which need not go into any detail other than the
mere finding) and shall cause notice of such determination to be given to the
mayor who shall thereupon appoint, as hereinafter provided, not less than five
nor more than nine commissioners to act as an authority. Said commission shall
be a public body and a body corporate and politic upon the completion of the
taking of the following proceedings:

The commissioners shall
present to the Secretary of State an application signed by them, which shall
set forth (without any detail other than the mere recital):

(1) That a notice has
been given and public hearing has been held as aforesaid, that the council made
the aforesaid determination after such hearing, and that the mayor has
appointed them as commissioners;

(2) The name and
official residence of each of the commissioners, together with a certified copy
of the appointment evidencing their right to office, the date and place of
induction into and taking oath of office, and that they desire the housing
authority to become a public body and a body corporate and politic under this
Article;

(3) The term of office
of each of the commissioners;

(4) The name which is
proposed for the corporation; and

(5) The location of the
principal office of the proposed corporation.

The application shall be
subscribed and sworn to by each of said commissioners before an officer
authorized by the laws of the State to take and certify oaths, who shall
certify upon the application that he personally knows the commissioners and
knows them to be the officers as asserted in the application, and that each
subscribed and swore thereto in the officer's presence. The Secretary of State
shall examine the application and if he finds that the name proposed for the
corporation is not identical with that of a person or of any other corporation
of this State or so nearly similar as to lead to confusion and uncertainty he
shall receive and file it and shall record it in an appropriate book of record
in his office.

When the application has been
made, filed and recorded, as herein provided, the authority shall constitute a
public body and a body corporate and politic under the name proposed in the
application; the Secretary of State shall make and issue to the said
commissioners a certificate of incorporation pursuant to this Article, under
the seal of the State, and shall record the same with the application.

If the council, after a
hearing as aforesaid, shall determine that neither of the above enumerated
conditions exist, it shall adopt a resolution denying the petition. After three
months shall have expired from the date of the denial of any such petitions,
subsequent petitions may be filed as aforesaid and new hearings and
determinations made thereon.

In any suit, action or
proceeding involving the validity or enforcement of or relating to any contract
of the authority, the authority shall be conclusively deemed to have been
established in accordance with the provisions of this Article upon proof of the
issuance of the aforesaid certificate by the Secretary of State. A copy of such
certificate, duly certified by the Secretary of State, shall be admissible in
evidence in any such suit, action or proceeding, and shall be conclusive proof
of the filing and contents thereof.

The Secretary of State is
authorized and empowered to revoke or to cancel a certificate of incorporation
previously issued to an authority or housing authority upon filing in his
office a petition and resolution of the council and a petition and resolution
of the authority and its members requesting such revocation or cancellation and
when the Secretary of State is satisfied that no indebtedness has been incurred
or property acquired by said housing authority. (1935, c. 456, s. 4; 1943, c.
636, s. 7; 1961, c. 987; 1971, c. 362, s. 1; c. 599.)

§ 157-4.1. Alternative organization - any city.

(a) In lieu of creating a housing authority as
authorized herein, the council of any city may, if it deems wise, either
designate a redevelopment commission created under the provisions of Chapter
160 of the General Statutes to exercise the powers, duties, and
responsibilities of a housing authority as prescribed herein, or may itself
exercise such powers, duties, and responsibilities. Any such designation shall
be by passage of a resolution adopted in accordance with the procedure and
pursuant to the finding specified in the first and second paragraphs of G.S. 157-4.
In the event the council of any city designates itself to exercise the powers,
duties, and responsibilities of a housing authority, then where any act,
proceeding, or approval is required to be done, recommended, or approved both
by a housing authority and by the council of the city, then the performance,
recommendation, or approval thereof once by the council of the city shall be
sufficient to make such performance, recommendation, or approval valid and
legal. In the event the council of the city designates itself to exercise the
powers, duties, and responsibilities of a housing authority, it may assign the
administration of the housing programs, projects, and policies to any existing
or new department of the city.

(b) The council of any city which has prior to July 1,
1969, created, or which may hereafter create, a housing authority may, in its
discretion, by resolution abolish such housing authority, such abolition to be
effective on a day set in such resolution not less than 90 days after its
adoption. Upon the adoption of such a resolution, the housing authority of the
city is hereby authorized and directed to take such actions and to execute such
documents as will carry into effect the provisions and the intent of the
resolution, and as will effectively transfer its authority, responsibilities,
obligations, personnel, and property, both real and personal, to the city. Any
city which abolishes a housing authority pursuant to this subsection may, at
any time subsequent to such abolition or concurrently therewith, exercise the
authority granted by subsection (a) of this section.

On the day set in the resolution of the council:

(1) The housing authority shall cease to exist as a body
politic and corporate and as a public body;

(2) All property, real and personal and mixed, belonging
to the housing authority shall vest in, belong to, and be the property of the
city;

(3) All judgments, liens, rights of liens, and causes of
action of any nature in favor of the housing authority shall remain, vest in,
and inure to the benefit of the city;

(4) All rentals, taxes, assessments, and any other
funds, charges or fees, owing to the housing authority shall be owed to and
collected by the city;

(5) Any actions, suits, and proceedings, pending
against, or having been instituted by the housing authority shall not be abated
by such abolition, but all such actions, suits, and proceedings shall be
continued and completed in the same manner as if abolition had not occurred,
and the city shall be a party to all such actions, suits, and proceedings in
the place and stead if the housing authority and shall pay or cause to be paid
any judgments rendered against the housing authority in any such actions,
suits, or proceedings, and no new process need be served in any such action,
suit, or proceeding;

(6) All obligations of the housing authority, including
outstanding indebtedness, shall be assumed by the city, and all such
obligations and outstanding indebtedness shall be constituted obligations and
indebtedness of the city;

(7) All ordinances, rules, regulations and policies of
the housing authority shall continue in full force and effect until repealed or
amended by the council of the city.

(c) Where the governing body of any municipality has in
its discretion, by resolution abolished a housing authority, pursuant to
subsection (b) above, the governing body of such municipality may, at any time
subsequent to the passage of a resolution abolishing a housing authority, or
concurrently therewith, by the passage of a resolution adopted in accordance
with the procedures and pursuant to the finding specified in G.S. 157-4.1,
designate an existing redevelopment commission created pursuant to Article 37
of Chapter 160 of the General Statutes, to exercise the powers, duties, and
responsibilities of a housing authority. Where the governing body of any
municipality designates, pursuant to this subsection, an existing redevelopment
commission created pursuant to Article 37 of Chapter 160 of the General
Statutes to exercise the powers, duties, and responsibilities of a housing
authority, on the day set in the resolution of the governing body passed
pursuant to subsection (b) of this section, or pursuant to subsection (c) of
this section:

(1) The housing authority shall cease to exist as a body
politic and corporate and as a public body;

(2) All property, real and personal and mixed, belonging
to the housing authority or to the municipality as hereinabove provided in
subsections (a) or (b), shall vest in, belong to, and be the property of the
existing redevelopment commission of the municipality;

(3) All judgments, liens, rights of liens, and causes of
action of any nature in favor of the housing authority or in favor of the
municipality as hereinabove provided in subsections (a) or (b), shall remain,
vest in, and inure to the benefit of the existing redevelopment commission of
the municipality;

(4) All rentals, taxes, assessments, and any other
funds, charges, or fees owing to the housing authority or owing to the
municipality as hereinabove provided in subsections (a) or (b), shall be owed
to and collected by the existing redevelopment commission of the municipality;

(5) Any actions, suits, and proceedings pending against
or having been instituted by the housing authority or the municipality, or to
which the municipality has become a party as hereinabove provided in
subsections (a) or (b), shall not be abated by such abolition but all such
actions, suits, and proceedings shall be continued and completed in the same
manner as if abolition had not occurred, and the existing redevelopment
commission of the municipality shall be a party to all such actions, suits, and
proceedings in the place and stead of the housing authority or the
municipality, and shall pay or cause to be paid any judgments rendered in such
actions, suits, or proceedings, and no new processes need be served in such
action, suit, or proceeding;

(6) All obligations of the housing authority or the
municipality as hereinabove provided in subsections (a) or (b), including
outstanding indebtedness, shall be assumed by the existing redevelopment
commission of the municipality; and all such obligations and outstanding
indebtedness shall be constituted obligations and indebtedness of the existing
redevelopment commission of the municipality;

(7) All ordinances, rules, regulations, and policies of
the housing authority or the municipality as hereinabove provided in
subsections (a) or (b), shall continue in full force and effect until repealed
and amended by the existing redevelopment commission of the municipality.

(d) A redevelopment commission designated by the
governing body of any municipality to exercise the powers, duties and
responsibilities of a housing authority shall, when exercising the same, do so
in accordance with Chapter 157 of the General Statutes. Otherwise the
redevelopment commission shall continue to exercise the powers, duties and
responsibilities of a redevelopment commission in accordance with Article 37 of
Chapter 160 of the General Statutes. (1969, c. 1217,
s. 2; 1971, c. 116, ss. 3, 4.)

§ 157-4.1A. Alternative organization - cities under 250,000
only.

(a) In lieu of creating a housing authority as
authorized herein, the council of any city may, if it deems wise, designate a
redevelopment commission created under the provisions of Chapter 160A of the
General Statutes, or a regional council of government created pursuant to Part
2 of Article 20 of Chapter 160A of the General Statutes, to exercise the
powers, duties, and responsibilities of a housing authority as prescribed
herein, or may itself exercise such powers, duties, and responsibilities. Any
such designation shall be by passage of a resolution adopted in accordance with
the procedure and pursuant to the finding specified in the first and second
paragraphs of G.S. 157-4. In the event the council of any city designates
itself to exercise the powers, duties, and responsibilities of a housing
authority, then where any act, proceeding, or approval is required to be done,
recommended, or approved both by a housing authority and by the council of the
city, then the performance, recommendation, or approval thereof once by the
council of the city shall be sufficient to make such performance,
recommendation, or approval valid and legal. In the event the council of the
city designates itself to exercise the powers, duties, and responsibilities of
a housing authority, it may assign the administration of the housing programs,
projects, and policies to any existing or new department of the city.

(b) The council of any city which has prior to July 1,
1969, created, or which may hereafter create, a housing authority may, in its
discretion, by resolution abolish such housing authority, such abolition to be
effective on a day set in such resolution that will allow sufficient time to
wind down the operations of the housing authority. Upon the adoption of such a
resolution, the housing authority of the city is hereby authorized and directed
to take such actions and to execute such documents as will carry into effect
the provisions and the intent of the resolution, and as will effectively
transfer its authority, responsibilities, obligations, personnel, and property,
both real and personal, to the city. Any city which abolishes a housing
authority pursuant to this subsection may, at any time subsequent to such
abolition or concurrently therewith, exercise the authority granted by
subsection (a) of this section.

On the day set in the resolution of the council, all of the
following apply:

(1) The housing authority shall cease to exist as a body
politic and corporate and as a public body.

(2) All property, real and personal and mixed, belonging
to the housing authority shall vest in, belong to, and be the property of the
city.

(3) All judgments, liens, rights of liens, and causes of
action of any nature in favor of the housing authority shall remain, vest in,
and inure to the benefit of the city.

(4) All rentals, taxes, assessments, and any other
funds, charges or fees, owing to the housing authority shall be owed to and
collected by the city.

(5) Any actions, suits, and proceedings, pending
against, or having been instituted by the housing authority shall not be abated
by such abolition, but all such actions, suits, and proceedings shall be
continued and completed in the same manner as if abolition had not occurred,
and the city shall be a party to all such actions, suits, and proceedings in
the place and stead if the housing authority and shall pay or cause to be paid
any judgments rendered against the housing authority in any such actions,
suits, or proceedings, and no new process need be served in any such action,
suit, or proceeding.

(6) All obligations of the housing authority, including
outstanding indebtedness, shall be assumed by the city, and all such
obligations and outstanding indebtedness shall be constituted obligations and
indebtedness of the city.

(7) All ordinances, rules, regulations and policies of
the housing authority shall continue in full force and effect until repealed or
amended by the council of the city.

(c) Where the governing body of any municipality has in
its discretion, by resolution abolished a housing authority, pursuant to
subsection (b) of this section, the governing body of such municipality may, at
any time subsequent to the passage of a resolution abolishing a housing
authority, or concurrently therewith, by the passage of a resolution adopted in
accordance with the procedures and pursuant to the finding specified in G.S. 157-4.1,
designate an existing redevelopment commission created pursuant to Article 22
of Chapter 160A of the General Statutes, or a regional council of government
created pursuant to Part 2 of Article 20 of Chapter 160A of the General
Statutes, to exercise the powers, duties, and responsibilities of a housing
authority. Where the governing body of any municipality designates, pursuant to
this subsection, an existing redevelopment commission or a regional council of
government to exercise the powers, duties, and responsibilities of a housing
authority, on the day set in the resolution of the governing body passed
pursuant to subsection (b) of this section, or pursuant to subsection (c) of
this section, all of the following apply:

(1) The housing authority shall cease to exist as a body
politic and corporate and as a public body.

(2) All property, real and personal and mixed, belonging
to the housing authority or to the municipality as hereinabove provided in
subsections (a) or (b), shall vest in, belong to, and be the property of the
existing redevelopment commission or regional council of government.

(3) All judgments, liens, rights of liens, and causes of
action of any nature in favor of the housing authority or in favor of the
municipality as hereinabove provided in subsections (a) or (b), shall remain,
vest in, and inure to the benefit of the existing redevelopment commission or
regional council of government.

(4) All rentals, taxes, assessments, and any other
funds, charges, or fees owing to the housing authority or owing to the
municipality as hereinabove provided in subsections (a) or (b), shall be owed
to and collected by the existing redevelopment commission or regional council
of government.

(5) Any actions, suits, and proceedings pending against
or having been instituted by the housing authority or the municipality, or to
which the municipality has become a party as hereinabove provided in
subsections (a) or (b), shall not be abated by such abolition but all such
actions, suits, and proceedings shall be continued and completed in the same
manner as if abolition had not occurred, and the existing redevelopment
commission or regional council of government shall be a party to all such actions,
suits, and proceedings in the place and stead of the housing authority or the
municipality, and shall pay or cause to be paid any judgments rendered in such
actions, suits, or proceedings, and no new processes need be served in such
action, suit, or proceeding.

(6) All obligations of the housing authority or the
municipality as hereinabove provided in subsections (a) or (b), including
outstanding indebtedness, shall be assumed by the existing redevelopment
commission or regional council of government; and all such obligations and
outstanding indebtedness shall be constituted obligations and indebtedness of
the existing redevelopment commission or regional council of government.

(7) All rules, regulations, and policies of the housing
authority as hereinabove provided in subsections (a) or (b), shall continue in
full force and effect until repealed and amended by the existing redevelopment
commission or regional council of government.

(8) Notwithstanding G.S. 157-5 and G.S. 157-8,
the term of office for all commissioners shall expire.

(d) A redevelopment commission or regional council of
government designated by the governing body of any municipality to exercise the
powers, duties, and responsibilities of a housing authority shall, when
exercising the same, do so in accordance with Chapter 157 of the General
Statutes. Otherwise, the redevelopment commission shall continue to exercise
its powers, duties, and responsibilities in accordance with Article 22 of
Chapter 160A of the General Statutes, and the regional council of governments
shall continue to exercise its powers, duties, and responsibilities in
accordance with Part 2 of Article 20 of Chapter 160A of the General Statutes.

(e) Upon passage of a resolution pursuant to subsection
(b) or (c) of this section, the city council may appoint an interim executive
director who will work with the housing authority to facilitate any transfer to
the city, redevelopment commission, or regional council of government, and who
will serve in that capacity until the transfer is complete. The interim
executive director shall have all the powers and duties granted to an executive
director pursuant to G.S. 157-5(e) along with the rules, regulations, and
policies of the housing authority.

(f) This section does not apply to cities with a
population of greater than 250,000 according to the latest federal decennial
census. (1969, c. 1217, s. 2; 1971, c. 116, ss. 3, 4;
2017-178, ss. 1, 3.)

§ 157-4.2. Authority
budgeting and accounting systems as a part of city or county budgeting and
accounting systems.

The council of a city or the
board of commissioners of a county may by resolution provide that the budgeting
and accounting systems of the city's or county's housing authority (or, if the
city's redevelopment commission is exercising the powers, duties, and
responsibilities of a housing authority, the budgeting and accounting systems
of the redevelopment commission) shall be an integral part of the budgeting and
accounting systems of the city or county. If such a resolution is adopted:

(1) For purposes of the
Local Government Budget and Fiscal Control Act, the authority (or commission)
shall not be considered a "public authority," as that phrase is
defined in G.S. 159-7(b), but rather shall be considered a department or agency
of the city or county. The operations of the authority (or commission) shall be
budgeted and accounted for as if the operations were those of a public
enterprise of the city or county.

(2) The budget of the
authority (or commission) shall be prepared and submitted in the same manner and
according to the same procedures as are the budgets of other departments and
agencies of the city or county; and the budget ordinance of the city or county
shall provide for the operations of the authority (or commission).

(3) The budget officer
and finance officer of the city or county shall administer and control that
portion of the city or county budget ordinance relating to the operations of
the authority (or commission). (1971, c. 780, s. 37.1; 1973, c. 474, s. 29.)

§ 157-5. Appointment,
qualifications and tenure of commissioners.

(a) An authority shall
consist of not less than five nor more than eleven commissioners appointed by
the mayor and the mayor shall designate the first chair. No commissioner may be
a city official. At least one of the commissioners appointed shall be a person
who is directly assisted by the public housing authority. However, there shall
be no requirement to appoint such a person if the authority: (i) operates less
than 300 public housing units, (ii) provides reasonable notice to the resident
advisory board of the opportunity for at least one person who is directly
assisted by the authority to serve as a commissioner, and (iii) within a
reasonable time after receipt of the notice by the resident advisory board, has
not been notified of the intention of any such person to serve. The mayor shall
appoint the person directly assisted by the authority unless the authority's
rules require that the person be elected by other persons who are directly
assisted by the authority. If the commissioner directly assisted by the public
housing authority ceases to receive such assistance, the commissioner's office
shall be abolished and another person who is directly assisted by the public
housing authority shall be appointed by the mayor.

(b) No commissioner who
is also a person directly assisted by the public housing authority shall be
qualified to vote on matters affecting his or her official conduct or matters
affecting his or her own individual tenancy, as distinguished from matters
affecting tenants in general. No more than one third of the members of any
housing authority commission shall be tenants of the authority or recipients of
housing assistance through any program operated by the authority.

(c) The council may at
any time by resolution or ordinance increase or decrease the membership of an
authority, within the limitations herein prescribed.

(d) The mayor shall
designate overlapping terms of not less than one nor more than five years for
the commissioners first appointed. Thereafter, the term of office shall be five
years. A commissioner shall hold office until his or her successor has been
appointed and has qualified. Vacancies shall be filled for the unexpired term.
A majority of the commissioners shall constitute a quorum. The mayor shall file
with the city clerk a certificate of the appointment or reappointment of any
commissioner and such certificate shall be conclusive evidence of the due and
proper appointment of such commissioner. A commissioner shall receive no
compensation for his or her services but he or she shall be entitled to the
necessary expenses including traveling expenses incurred in the discharge of
his or her duties.

(e) When the office of
the first chair of the authority becomes vacant, the authority shall select a
chair from among its members. An authority shall select from among its members
a vice-chair, and it may employ a secretary (who shall be executive director),
technical experts and such other officers, agents, and employees, permanent and
temporary, as it may require, and shall determine their qualifications, duties,
and compensation. An authority may call upon the corporation counsel or chief
law officer of the city for such legal services as it may require or it may
employ its own counsel and legal staff. An authority may delegate to one or
more of its agents or employees such powers or duties as it may deem proper. (1935, c. 456, s. 5; 1971, c.
362, ss. 2-5; 1981, c. 864; 1999-146, s. 1.)

§ 157-6. Duty of authority.

The authority shall be under a
statutory duty to comply or to cause compliance strictly with all provisions of
this Article and the laws of the State and in addition thereto, with each and
every term, provision and covenant in any contract of the authority on its part
to be kept or performed. (1935, c. 456, s. 6; 1997-455, s. 1.)

§ 157-7. Interested
commissioners or employees.

No commissioner or employee of
an authority shall acquire any interest direct or indirect in any housing
project or in any property included or planned to be included in any project,
nor shall he have any interest direct or indirect in any contract or proposed
contract for materials or services to be furnished or used in connection with
any housing project. If any commissioner or employee of an authority owns or
controls an interest direct or indirect in any property included or planned to
be included in any housing project, he shall immediately disclose the same in
writing to the authority and such disclosure shall be entered upon the minutes
of the authority. Failure to so disclose such interest shall constitute
misconduct in office. (1935, c. 456, s. 7.)

§ 157-8. Removal of
commissioners.

The mayor may remove a
commissioner for inefficiency or neglect of duty or misconduct in office, but
only after the commissioner shall have been given a copy of the charges against
him (which may be made by the mayor) at least 10 days prior to the hearing
thereon and had an opportunity to be heard in person or by counsel.

Any obligee of the authority
may file with the mayor written charges that the authority is violating
willfully any law of the State or any term, provision or covenant in any
contract to which the authority is a party. The mayor shall give each of the
commissioners a copy of such charges at least 10 days prior to the hearing
thereon and an opportunity to be heard in person or by counsel and shall within
15 days after receipt of such charges remove any commissioners of the authority
who shall have been found to have acquiesced in any such willful violation.

A commissioner shall be deemed
to have acquiesced in a willful violation by the authority of a law of this
State or of any term, provision or covenant contained in a contract to which
the authority is a party, if, before a hearing is held on the charges against
him, he shall not have filed a written statement with the authority of his
objections to, or lack of participation in, such violation.

In the event of the removal of
any commissioner, the mayor shall file in the office of the city clerk a record
of the proceedings together with the charges made against the commissioners and
the findings thereon. (1935, c. 456, s. 8.)

§ 157-9. Powers of authority.

(a) An authority shall constitute a public body and a
body corporate and politic, exercising public powers, and having all the powers
necessary or convenient to carry out and effectuate the purposes and provisions
of this Article, including the following powers in addition to others herein
granted:

To investigate into living, dwelling and housing conditions
and into the means and methods of improving such conditions; to determine where
unsafe, or insanitary dwelling or housing conditions exist; to study and make
recommendations concerning the plan of any city or municipality located within
its boundaries in relation to the problem of clearing, replanning and
reconstruction of areas in which unsafe or insanitary dwelling or housing
conditions exist, and the providing of dwelling accommodations for persons of
low income, and to cooperate with any city municipal or regional planning
agency; to prepare, carry out and operate housing projects; to approve, assist,
and cooperate with, as its instrumentality, a nonprofit corporation in
providing financing by the issuance by such nonprofit corporation's obligations
(which obligations shall not be or be deemed to be indebtedness of a housing
authority) for one or more housing projects, pursuant to the United States Housing
Act of 1937, as amended, and applicable regulations thereunder, specifically
including, but not limited to, programs to make construction and other loans to
developers or owners of residential housing, and to acquire, operate or manage
such a housing project, and to administer federal housing assistance subsidy
payments for such projects; to provide for the construction, reconstruction,
improvement, alteration or repair of any housing project or any part thereof;
to take over by purchase, lease or otherwise any housing project located within
its boundaries undertaken by any government, or by any city or municipality
located in whole or in part within its boundaries; to manage as agent of any
city or municipality located in whole or in part within its boundaries any
housing project constructed or owned by such city; to act as agent for the
federal government in connection with the acquisition, construction, operation
and/or management of a housing project or any part thereof; to arrange with any
city or municipality located in whole or in part within its boundaries or with
a government for the furnishing, planning, replanning, installing, opening or
closing of streets, roads, roadways, alleys, sidewalks or other places or
facilities or for the acquisition by such city, municipality, or government of
property, options or property rights or for the furnishing of property or
services in connection with a project; to arrange with the State, its
subdivisions and agencies, and any county, city or municipality of the State,
to the extent that it is within the scope of each of their respective
functions, (i) to cause the services customarily provided by each of them to be
rendered for the benefit of such housing authority and/or the occupants of any
housing projects and (ii) to provide and maintain parks and sewage, water and
other facilities adjacent to or in connection with housing projects and (iii)
to change the city or municipality map, to plan, replan, zone or rezone any
part of the city or municipality; to lease or rent any of the dwelling or other
accommodations or any of the lands, buildings, structures or facilities
embraced in any housing project and to establish and revise the rents or
charges therefor; to enter upon any building or property in order to conduct
investigations or to make surveys or soundings; to purchase, lease, obtain
options upon, acquire by gift, grant, devise, or otherwise any property real or
personal or any interest therein from any person, firm, corporation, city,
municipality, or government; to acquire by eminent domain any real property,
including improvements and fixtures thereon; to sell, exchange, transfer,
assign, or pledge any property real or personal or any interest therein to any
person, firm, corporation, municipality, city, or government; to own, hold,
clear and improve property; to insure or provide for the insurance of the
property or operations of the authority against such risks as the authority may
deem advisable; to procure insurance or guarantees from a federal government of
the payment of any debts or parts thereof secured by mortgages made or held by
the authority on any property included in any housing project; to borrow money
upon its bonds, notes, debentures or other evidences of indebtedness and to
secure the same by pledges of its revenues, and by mortgages upon property held
or to be held by it, or in any other manner; in connection with any loan, to
agree to limitations upon its right to dispose of any housing project or part
thereof or to undertake additional housing projects; in connection with any
loan by a government, to agree to limitations upon the exercise of any powers
conferred upon the authority by this Article; to invest any funds held in
reserves or sinking funds, or any funds not required for immediate
disbursement, in property or securities in which savings banks may legally
invest funds subject to their control; to sue and be sued; to have a seal and
to alter the same at pleasure; to have perpetual succession; to make and
execute contracts and other instruments necessary or convenient to the exercise
of the powers of the authority; to make and from time to time amend and repeal
bylaws, rules and regulations not inconsistent with this Article, to carry into
effect the powers and purposes of the authority; to conduct examinations and
investigations and to hear testimony and take proof under oath at public or
private hearings on any matter material for its information; to issue subpoenas
requiring the attendance of witnesses or the production of books and papers and
to issue commissions for the examination of witnesses who are out of the State
or unable to attend before the authority, or excused from attendance; and to
make available to such agencies, boards or commissions as are charged with the
duty of abating or requiring the correction of nuisances or like conditions, or
of demolishing unsafe or insanitary structures within its territorial limits,
its findings and recommendations with regard to any building or property where
conditions exist which are dangerous to the public health, morals, safety or
welfare. Any of the investigations or examinations provided for in this Article
may be conducted by the authority or by a committee appointed by it, consisting
of one or more commissioners, or by counsel, or by an officer or employee
specially authorized by the authority to conduct it. Any commissioner, counsel
for the authority, or any person designated by it to conduct an investigation
or examination shall have power to administer oaths, take affidavits and issue
subpoenas or commissions. An authority may exercise any or all of the powers
herein conferred upon it, either generally or with respect to any specific
housing project or projects, through or by an agent or agents which it may
designate, including any corporation or corporations which are or shall be
formed under the laws of this State, and for such purposes an authority may
cause one or more corporations to be formed under the laws of this State or may
acquire the capital stock of any corporation or corporations. Any corporate
agent, (i) all of the stock of which shall be owned by the authority or its
nominee or nominees or (ii) the board of directors of which shall be elected or
appointed by the authority or is composed of the commissioners of the authority
or (iii) which is otherwise subject to the control of the authority or the
governmental entity which created the authority, may to the extent permitted by
law exercise any of the powers conferred upon the authority herein. In addition
to all of the other powers herein conferred upon it, an authority may do all
things necessary and convenient to carry out the powers expressly given in this
Article. No provisions with respect to the acquisition, operation or
disposition of property by other public bodies shall be applicable to an
authority unless the legislature shall specifically so state.

(b) Notwithstanding anything to the contrary contained
in this Article or in any other provision of law an authority may include in
any contract let in connection with a project, stipulations requiring that the
contractor and any subcontractors comply with requirements as to minimum wages
and maximum hours of labor, and comply with any conditions which the federal
government may have attached to its financial aid of the project.

(c) To the extent not inconsistent with the
Constitution or statutes of this State or the United States, an authority may
adopt and enforce rules governing the lawful entry of guests and visitors to
its properties, including the visitors and guests of its tenants. Prior to
adopting such rules, an authority shall make reasonable efforts to consult with
or obtain comments from its tenants or their representatives. Persons who enter
or remain on the property of an authority in violation of such rules shall be
subject to prosecution as applicable under G.S. 14-159.12 or G.S. 14-159.13.

(a) Whenever the words
"low income" appear in this Chapter, they shall be construed to mean
"low and moderate income."

(b) This section
applies only to the housing authority of the largest city in a county which has
two or more cities with a population of 60,000 or over, according to the most
recent decennial federal census.

(d) Notwithstanding the
provisions of subsections (b) and (c), subsection (a) of this section applies
to all counties with an area of 250 square miles or less, and a population of
more then [than] 100,000 according to the most recent decennial federal census,
and applies to all cities within such counties.

(e) Notwithstanding the
provisions of subsections (b), (c), and (d) of this section, subsection (a) of
this section applies to the housing authorities of all cities that have a
population of less than 20,000 according to the most recent decennial federal
census and are the location of a constituent institution of The University of
North Carolina that has a student enrollment of more than 10,000 students and
applies to the housing authorities of all counties that have a population of
less than 80,000 according to the most recent decennial federal census and are
the location of a constituent institution of The University of North Carolina
that has a student enrollment of more than 10,000 students. (1983, c. 769, s. 1; 1985
(Reg. Sess., 1986), c. 1004, s. 1; 2009-218, s. 1.)

§ 157-9.2. Additional powers.

(a) The findings and
purposes set forth in the first three paragraphs of G.S. 122A-2 and in G.S.
122A-5.4(a) are hereby restated and incorporated herein by reference, except
that for purposes of incorporating such findings and purposes herein, the
phrases "North Carolina Housing Finance Agency" and
"Agency" shall read "authority" and the word
"Chapter" shall read "Section".

(b) Words and phrases
used in this section and not otherwise defined in this Chapter shall be defined
as provided in Chapter 122A of the General Statutes, except that for purposes
of incorporating such definitions into this section, the phrases "North
Carolina Housing Finance Agency" and "Agency" shall read
"authority" and the "Chapter" shall read
"Section".

(c) An authority shall
have all of the powers necessary or convenient to carry out and effectuate the
purposes and provisions of this section, including, without limiting the
generality of the foregoing, the power:

(1) To make or
participate in the making of mortgage loans to sponsors of residential housing;
provided, however, that such loans shall be made only upon the determination by
the authority that mortgage loans are not otherwise available wholly or in part
from public or private lenders upon equivalent terms and conditions;

(2) To make or
participate in the making of mortgage loans to persons and families of lower
income and persons and families of moderate income for residential housing;
provided, however, that such loans shall be made only upon the determination by
the authority that mortgage loans are not otherwise available wholly or in part
from public or private lenders upon equivalent terms and conditions;

(3) To make loans to
mortgage lenders on terms and conditions requiring the proceeds thereof to be
used by such mortgage lenders to originate new mortgage loans to (i) sponsors
of residential housing for persons and families of lower income and persons and
families of moderate income and (ii) persons and families of lower income and
persons and families of moderate income for residential housing. The loans to
mortgage lenders and the loans to be made by such mortgage lenders shall be
made on such applicable terms and conditions as are set forth in rules and
regulations of the authority or otherwise established by the authority;
provided, however, that loans shall be made by such mortgage lenders only upon
the determination by the authority that such financing is not otherwise
available, wholly or in part, from public or private lenders upon equivalent
terms and conditions;

(4) To collect and pay
reasonable fees and charges in connection with making, purchasing and servicing
of its loans, notes, bonds, commitments and other evidences of indebtedness;
and

(5) To borrow money to
carry out and effectuate its corporate purposes and to issue its obligations as
evidence of any such borrowing.

(d) Notwithstanding the
provisions of G.S. 157-17.1, the approval of the Local Government Commission
shall not be necessary for the issuance of bonds or the incurrence of
indebtedness pursuant to this section, and the provisions of the Local
Government Finance Act shall not be applicable with respect to bonds issued or
indebtedness incurred pursuant to this section. Provided further that
notwithstanding any other provision of State law or local ordinance, the
approval of the governing body of the county or city in which the housing
authority is located shall be necessary for the issuance of bonds or the
incurrence of indebtedness pursuant to this section.

(e) This section
applies only to housing authorities in any county with an area of 250 square
miles or less and a population of more than 100,000 according to the most
recent decennial federal census, and applies to all housing authorities of all
cities within such counties.

(f) Not later than 30
days prior to making its determination, pursuant to subsections (c)(1), (2) or
(3) of this section, that mortgage loans are not otherwise available wholly or
in part from public or private lenders upon equivalent terms and conditions, an
authority shall give written notice of a proposed financing, including the
proposed terms and conditions of the mortgage loans to be made, to the North
Carolina Housing Finance Agency. Within 20 days following receipt of such
notice, the North Carolina Housing Finance Agency shall respond, in writing, to
the authority, and provide the authority with any terms and conditions of
mortgage loans which the Agency can make available and which the Agency
believes are reasonably relevant to said determination. (1987, c. 423.)

§ 157-9.3. Mixed income
projects owned or operated by authorities.

If an authority is the owner
or operator of a housing project that includes units for persons of other than
low or moderate income, the operating expenses of that project (or of all such
projects, together, owned or operated by the authority) shall be met entirely
from rents from the project (or projects) together with any rent subsidies
provided to low income tenants in the project (or projects). No rent subsidy
may be provided to any tenant who is not a person of low income, and no rent
subsidy may be paid from bond proceeds. (1987, c. 464, s. 4.)

§ 157-9.4. Multi-family
rental housing projects.

(a) If an authority
owns, operates, or provides financial assistance to a multi-family rental
housing project, at least twenty percent (20%) of the units in the project
shall be set aside for the exclusive use of persons of low income. An
authority may group projects being developed concurrently in order to meet the
requirement of this subsection.

(b) If an authority
provides financial assistance to a multi-family rental housing project, the
authority shall establish, as a condition of the assistance, requirements and
procedures that insure that all units initially set aside for the exclusive use
of persons of low income continue to be so used for at least 15 years after the
initial date on which at least fifty percent (50%) of the units in the project
are occupied. (1987,
c. 464, s. 4.1.)

§ 157-10. Cooperation of
authorities.

Any two or more authorities
may join or cooperate with one another in the exercise, either jointly or
otherwise, of any or all of their powers for the purpose of financing
(including the issuance of bonds, notes or other obligations and giving
security therefor), planning, undertaking, owning, constructing, operating or
contracting with respect to a housing project or projects located within the
boundaries of any one or more of said authorities. For such purpose an
authority may by resolution prescribe and authorize any other housing
authority or authorities, so joining or cooperating with it, to act on behalf
with respect to any or all of such powers. Any authorities joining or
cooperating with one another may by resolutions appoint from among the commissioners
of such authorities an executive committee with full power to act on behalf of
such authorities with respect to any or all of their powers, as prescribed by
resolutions of such authorities. (1935, c. 456, s. 10; 1943, c. 636, s. 2.)

§ 157-11. Eminent domain.

The authority shall have the
right to acquire by eminent domain any real property, including fixtures and
improvements, which it may deem necessary to carry out the purposes of this
Article after the adoption by it of a resolution declaring that the acquisition
of the property described therein is in the public interest and necessary for
public use. The authority may exercise the power of eminent domain pursuant to
the provisions of Chapter 40A.

Property already devoted to a
public use may be acquired, provided, that no property belonging to any city or
municipality or to any government may be acquired without its consent and that
no property belonging to a public utility corporation may be acquired without
the approval of the commission or other officer or tribunal, if any there be,
having regulatory power over such corporation. (1935, c. 456, s. 11; 1981, c. 919, s. 25.)

§ 157-12. Acquisition of land
for government.

The authority may acquire by
purchase or by the exercise of its power of eminent domain, as aforesaid, any
property real or personal for any housing project being constructed or operated
by a government. The authority upon such terms and conditions, with or without
consideration, as it shall determine, may convey title or deliver possession of
such property so acquired or purchased to such government for use in connection
with such housing project. (1935, c. 456, s. 12.)

§ 157-13. Zoning and building
laws.

All housing projects of an
authority shall be subject to the planning, zoning, sanitary and building laws,
ordinances and regulations applicable to the locality in which the housing
project is situated. (1935, c. 456, s. 13.)

§ 157-14. Types of bonds
authority may issue.

An authority shall have power
to issue bonds from time to time in its discretion for any of its corporate
purposes. An authority shall also have power to issue or exchange refunding
bonds for the purpose of paying, retiring, extending or renewing bonds previously
issued by it. An authority may issue such types of bonds as it may determine,
including (without limiting the generality of the foregoing) bonds on which the
principal and interest are payable from income and revenues of the authority
and from grants or contributions from the federal government or other source.
Such income and revenues securing the bonds may be:

(1) Exclusively the
income and revenues of the housing project financed in whole or in part with
the proceeds of such bonds;

(2) Exclusively the
income and revenues of certain designated housing projects, whether or not they
are financed in whole or in part with the proceeds of such bonds; or

(3) The income and
revenues of the authority generally.

Any such bonds may be
additionally secured by a pledge of any income or revenues of the authority, or
a mortgage of any housing project, projects or other property of the authority.

Neither the commissioners of
an authority nor any person executing the bonds shall be liable personally on
the bonds by reason of the issuance thereof. The bonds and other obligations of
an authority (and such bonds and obligations shall so state in their face)
shall not be a debt of any city or municipality and neither the State nor any
such city or municipality shall be liable thereon, nor in any event shall such
bonds or obligations be payable out of any funds or properties other than those
of said authority. The bonds shall not constitute an indebtedness within the
meaning of any constitutional or statutory debt limitation of the laws of the
State. Bonds may be issued under this Article notwithstanding any debt or other
limitation prescribed in any statute.

This Article without reference
to other statutes of the State shall constitute full and complete authority for
the authorization, issuance, delivery and sale of bonds hereunder and such
authorization, issuance, delivery and sale shall not be subject to any
conditions, restrictions or limitations imposed by any other law whether
general, special or local. (1935, c. 456, s. 14; 1939, c. 150, s. 2.)

§ 157-15. Form and sale of
bonds.

The bonds of the authority
shall be authorized by its resolution and shall be issued in one or more series
and shall bear such date or dates, mature at such time or times, not exceeding
60 years from their respective dates, bear interest at such rate or rates, be
in such denominations (which may be made interchangeable), be in such form,
either coupon or registered, carry such registration privileges, be executed in
such manner, be payable in such medium of payment, at such place or places, and
be subject to such terms of redemption (with or without premium) as such
resolution or its trust indenture or mortgage may provide.

The bonds may be sold at
public or private sale; provided, however, that no public sale shall be held
unless notice thereof is published once at least 10 days prior to such sale in
a newspaper having a general circulation in the city in which the authority is
located and in a financial newspaper published in the City of New York, New
York, or in the City of Chicago, Illinois. The bonds may be sold at such price
or prices as the authority shall determine.

Pending the authorization,
preparation, execution or delivery of definitive bonds, the authority may issue
interim certificates, or other temporary obligations, to the purchaser of such
bonds. Such interim certificates, or other temporary obligations, shall be in
such form, contain such terms, conditions and provisions, bear such date or
dates, and evidence such agreements relating to their discharge or payment or
the delivery of definitive bonds as the authority may by resolution, trust
indenture or mortgage determine.

In case any of the officers
whose signatures appear on any bonds or coupons shall cease to be such officers
before the delivery of such bonds, such signatures shall, nevertheless, be
valid and sufficient for all purposes, the same as if they had remained in
office until such delivery.

The authority shall have power
out of any funds available therefor to purchase any bonds issued by it at a
price not more than the principal amount thereof and the accrued interest;
provided, however, that bonds payable exclusively from the revenues of a
designated project or projects shall be purchased out of any such revenues
available therefor. All funds so purchased shall be cancelled. This paragraph
shall not apply to the redemption of bonds.

Any provision of any law to
the contrary notwithstanding, any bonds, interim certificates, or other
obligations issued pursuant to this Article shall be fully negotiable. (1935, c. 456, s. 15; 1971,
c. 87, s. 1; 1977, c. 784, s. 2.)

§ 157-16. Provisions of
bonds, trust indentures, and mortgages.

In connection with the
issuance of bonds and/or the incurring of any obligation under a lease and in
order to secure the payment of such bonds and/or obligations, the authority
shall have power:

(1) To pledge by
resolution, trust indenture, mortgage, or other contract, all or any part of
its rents, fees, or revenues.

(2) To covenant against
mortgaging all or any part of its property, real or personal, then owned or
thereafter acquired, or against permitting or suffering any lien thereon.

(3) To covenant with
respect to limitations on its right to sell, lease or otherwise dispose of any
housing project or any part thereof, or with respect to limitations on its
right to undertake additional housing projects.

(4) To covenant against
pledging all or any part of its rents, fees and revenues to which its right
then exists or the right to which may thereafter come into existence or against
permitting or suffering any lien thereon.

(5) To provide for the
release of property, rents, fees and revenues from any pledge or mortgage, and
to reserve rights and powers in, or the right to dispose of, property which is
subject to a pledge or mortgage.

(6) To covenant as to
the bonds to be issued pursuant to any resolution, trust indenture, mortgage or
other instrument and as to the issuance of such bonds in escrow or otherwise,
and as to the use and disposition of the proceeds thereof.

(7) To covenant as to
what other, or additional debt, may be incurred by it.

(8) To provide for the
terms, form, registration, exchange, execution and authentication of bonds.

(9) To provide for the
replacement of lost, destroyed or mutilated bonds.

(10) To covenant that the
authority warrants the title to the premises.

(11) To covenant as to the
rents and fees to be charged, the amount (calculated as may be determined) to
be raised each year or other period of time by rents, fees, and other revenues
and as to the use and disposition to be made thereof.

(12) To covenant as to the
use of any or all of its property, real or personal.

(13) To create or to
authorize the creation of special funds in which there shall be segregated

a. The proceeds of any
loan and/or grant;

b. All of the rents,
fees and revenues of any housing project or projects or parts thereof;

c. Any moneys held for
the payment of the costs of operation and maintenance of any such housing
projects or as a reserve for the meeting of contingencies in the operation and
maintenance thereof;

d. Any moneys held for
the payment of the principal and interest on its bonds or the sums due under its
leases and/or as a reserve for such payments; and

e. Any moneys held for
any other reserves or contingencies; and to covenant as to the use and disposal
of the moneys held in such funds.

(14) To redeem the bonds,
and to covenant for their redemption and to provide the terms and conditions
thereof.

(15) To covenant against
extending the time for the payment of its bonds or interest thereon, directly
or indirectly, by any means or in any manner.

(16) To prescribe the
procedure, if any, by which the terms of any contract with bondholders may be
amended or abrogated, the amount of bonds the holders of which must consent
thereto and the manner in which such consent may be given.

(17) To covenant as to the
maintenance of its property, the replacement thereof, the insurance to be
carried thereon and the use and disposition of insurance moneys.

(18) To vest in an obligee
of the authority the right, in the event of the failure of the authority to
observe or perform any covenant on its part to be kept or performed, to cure
any such default and to advance any moneys necessary for such purpose, and the
moneys so advanced may be made an additional obligation of the authority with
such interest, security and priority as may be provided in any trust indenture,
mortgage, lease or contract of the authority with reference thereto.

(19) To covenant and
prescribe as to the events of default and terms and conditions upon which any
or all of its bonds shall become or may be declared due before maturity and as
to the terms and conditions upon which such declaration and its consequences
may be waived.

(20) To covenant as to the
right, liabilities, powers and duties arising upon the breach by it of any
covenant, condition, or obligation.

(21) To covenant to
surrender possession of all or any part of any housing project or projects upon
the happening of an event of default (as defined in the contract) and to vest
in an obligee the right without judicial proceedings to take possession and to
use, operate, manage and control such housing projects or any part thereof, and
to collect and receive all rents, fees and revenues arising therefrom in the
same manner as the authority itself might do and to dispose of the moneys
collected in accordance with the agreement of the authority with such obligee.

(22) To vest in a trustee
or trustees the right to enforce any covenant made to secure, to pay, or in
relation to the bonds, to provide for the powers and duties of such trustee or
trustees, to limit liabilities thereof and to provide the terms and conditions
upon which the trustee or trustees or the holders of bonds or any proportion of
them may enforce any such covenant.

(23) To make covenants
other than in addition to the covenants herein expressly authorized, of like or
different character.

(24) To execute all
instruments necessary or convenient in the exercise of the powers herein
granted or in the performance of its covenants or duties, which may contain
such covenants and provisions, in addition to those above specified as the
government or any purchaser of the bonds of the authority may reasonably
require.

(25) To make such
covenants and to do any and all such acts and things as may be necessary or
convenient or desirable in order to secure its bonds, or in the absolute
discretion of the authority tend to make the bonds more marketable;
notwithstanding that such covenants, acts or things may not be enumerated
herein; it being the intention hereof to give the authority power to do all
things in the issuance of bonds, in the provisions for their security that are
not inconsistent with the Constitution of the State and no consent or approval
of any judge or court shall be required thereof. (1935, c. 456, s. 16; 1979,
c. 690, ss. 2, 3.)

§ 157-17. Power to mortgage
when project financed with governmental aid.

In connection with the interim
or permanent financing of any project to be permanently financed in whole or in
part by a government, or the permanent financing of which is to be secured by a
pledge of a government commitment for rental assistance payments, the authority
shall also have the power, subject to the consent or approval of any government
providing such financing or making such commitment for rental assistance
payments, to mortgage all or any part of its property, real or personal, then
owned or thereafter acquired, and thereby:

(1) To vest in a
government the right, upon the happening of an event of default (as defined in
such mortgage), to foreclose such mortgage through judicial proceedings or
through the exercise of a power of sale without judicial proceedings, so long
as a government shall be the holder of any of the bonds secured by such
mortgage.

(2) To vest in a trustee
or trustees the right, upon the happening of an event of default (as defined in
such mortgage), to foreclose such mortgage through judicial proceedings or
through the exercise of a power of sale without judicial proceedings.

(3) To vest in other
obligees the right to foreclose such mortgage by judicial proceedings.

(4) To vest in an
obligee, including a government, the right in foreclosing any mortgage as
aforesaid, to foreclose such mortgage as to all or such part or parts of the
property covered thereby as such obligee (in its absolute discretion) shall
elect; the institution, prosecution and conclusion of any such foreclosure
proceedings and/or the sale of any such parts of the mortgaged property shall
not affect in any manner or to any extent the lien of the mortgage on the parts
of the mortgaged property not included in such proceedings or not sold as
aforesaid. (1935,
c. 456, s. 17; 1977, c. 784, s. 3.)

§ 157-17.1. Approval of
mortgages by Local Government Commission; considerations; rules and
regulations.

(a) With the exception
of mortgages under G.S. 157-17, no housing authority may execute any mortgage
authorized by this Chapter without the approval of the Local Government
Commission.

(b) The Local
Government Commission shall consider, in any application by a housing authority
for approval of a mortgage, the following issues:

(1) The value of the
property, and any other secured indebtedness upon the property;

(2) The ability of the
authority to repay the indebtedness secured by the mortgage;

(3) Any other issues it
deems necessary to insure the financial soundness of the housing authority.

(c) The Local
Government Commission shall adopt rules and regulations to implement this
section. (1979,
c. 690, s. 5.)

§ 157-18. Remedies of an
obligee of authority.

An obligee of the authority
shall have the right in addition to all other rights which may be conferred on
such obligee subject only to any contractual restrictions binding upon such
obligee:

(1) By mandamus, suit,
action or proceeding in law or equity (all of which may be joined in one
action) to compel the authority, and the commissioners, officers, agents or
employees thereof to perform each and every term, provision and covenant
contained in any contract of the authority, and to require the carrying out of
any or all covenants and agreements of the authority and the fulfillment of all
duties imposed upon the authority by this Article.

(2) By suit, action or
proceeding in equity to enjoin any acts or things which may be unlawful, or the
violation of any of the rights of such obligee of the authority.

(3) By suit, action or
proceeding in any court of competent jurisdiction to cause possession of any
housing project or any part thereof to be surrendered to any obligee having the
right to such possession pursuant to any contract of the authority. (1935, c. 456, s. 18.)

Any authority shall have power
by its trust indenture, mortgage, lease or other contract to confer upon any
obligee holding or representing a specified amount in bonds, lease or other
obligations the right upon the happening of an "event of default" as
defined in such instrument:

(1) By suit, action or
proceeding in any court of competent jurisdiction to obtain the appointment of
a receiver of any housing project of the authority or any part or parts
thereof. If such receiver be appointed, he may enter and take possession of
such housing project or any part or parts thereof and operate and maintain
same, and collect and receive all fees, rents, revenues, or other charges
thereafter arising therefrom in the same manner as the authority itself might
do and shall keep such moneys in a separate account or accounts and apply the
same in accordance with the obligations of the authority as the court shall
direct.

(2) By suit, action or
proceeding in any court of competent jurisdiction to require the authority and
the commissioners thereof to account as if it and they were the trustees of an
express trust. (1935,
c. 456, s. 19.)

§ 157-20. Remedies
cumulative.

All the rights and remedies
hereinabove conferred shall be cumulative and in addition to all other rights
and remedies that may be conferred upon such obligee of the authority by law or
by any contract with the authority. (1935, c. 456, s. 20.)

§ 157-21. Limitations on
remedies of obligee.

All property of the authority
shall be exempt from levy and sale by virtue of an execution, and no execution
shall issue against the same. No judgment against the authority shall be a
charge or lien against its property, real or personal. The provisions of this
section shall not apply to or limit the right of obligees of any mortgage of
the authority provided for in G.S. 157-17, after foreclosure sale thereunder,
to obtain a judgment or decree for any deficiency due on the indebtedness
secured thereby and to issue execution on the credit of the authority. Such
deficiency judgment or decree shall be a lien and charge upon the property of
the authority, which may be levied on and sold by virtue of an execution or
other judicial process for the purpose of satisfying such deficiency judgment
or decree. (1935,
c. 456, s. 21; 1979, c. 690, s. 4.)

§ 157-22. Title obtained at
foreclosure sale subject to agreement with government.

Notwithstanding anything in
this Article to the contrary, any purchaser or purchasers at a sale of real or
personal property of the authority whether pursuant to any foreclosure of a
mortgage, pursuant to judicial process or otherwise, shall obtain title subject
to any contract between the authority and a government relating to the
supervision by a government of the operation and maintenance of such property
and the construction of improvements thereon. (1935, c. 456, s. 22.)

§ 157-23. Contracts with
federal government.

In addition to the powers
conferred upon the authority by other provisions of this Article, the authority
is empowered to borrow money and/or accept grants from the federal government
for or in aid of the construction of any housing project which such authority
is authorized by this Article to undertake, to take over any land acquired by
the federal government for the construction of a housing project, to take over
or lease or manage any housing project constructed or owned by the federal
government, and to these ends, to enter into such contracts, mortgages, trust
indentures, leases or other agreements as the federal government may require
including agreements that the federal government shall have the right to
supervise and approve the construction, maintenance and operation of such
housing project. It is the purpose and intent of this Article to authorize
every authority to do any and all things necessary to secure the financial aid
and the cooperation of the federal government in the construction, maintenance
and operation of any housing project which the authority is empowered by this
Article to undertake. (1935, c. 456, s. 23.)

§ 157-24. Security for funds
deposited by authorities.

The authority may by
resolution provide that

(1) All moneys deposited
by it shall be secured by obligations of the United States or of the State of a
market value equal at all times to the amount of such deposits or

(2) By any securities in
which savings banks may legally invest funds within their control or

(3) By an undertaking
with such sureties as shall be approved by the authority faithfully to keep and
pay over upon the order of the authority any such deposits and agreed interest
thereon, and all banks and trust companies are authorized to give any such
security for such deposits. (1935, c. 456, s. 24.)

§ 157-25. Housing bonds,
legal investments and security.

The State and all public
officers, municipal corporations, political subdivisions, and public bodies,
all banks, bankers, trust companies, savings banks and institutions, building
and loan associations, savings and loan associations, investment companies and
other persons carrying on a banking business, all insurance companies,
insurance associations, and other persons carrying on an insurance business,
and all executors, administrators, guardians, trustees and other fiduciaries
may legally invest any sinking funds, moneys or other funds belonging to them
or within their control in any bonds issued by a housing authority established
(or hereafter established) pursuant to this Article or issued by any public
housing authority or agency in the United States, when such bonds are secured
by a pledge of annual contributions to be paid by the United States government
or any agency thereof, or bonds which may be issued notwithstanding any other
limitations of this Chapter, by a not-for-profit corporate agency of a housing
authority secured by rentals payable pursuant to section 23 of the United
States Housing Act of 1937, as amended, or by rental assistance payments under
any other section of said act, as amended, and any such bonds shall be
authorized security for all public deposits and shall be fully negotiable in
this State; it being the purpose of this Article to authorize any persons,
firms, corporations, associations, political subdivisions, bodies and officers,
public or private, to use any funds owned or controlled by them, including (but
not limited to) sinking, insurance, investment, retirement, compensation,
pension and trust funds, and funds held on deposit, for the purchase of any
such bonds and that any such bonds shall be authorized security for all public
deposits and shall be fully negotiable in this State: Provided, however, that
nothing contained in this Article shall be construed as relieving any person,
firm or corporation from any duty of exercising reasonable care in selecting
securities. (1935,
c. 456, s. 25; 1941, c. 78, s. 3; 1971, c. 1161; 1977, c. 784, s. 4.)

§ 157-26. Tax exemptions.

An authority is a local government agency and is exempt from
taxation to the same extent as a unit of local government. Property owned by an
authority is exempt from taxation in accordance with Article V, § 2 of the
North Carolina Constitution. Bonds and other obligations issued by an authority
or its corporate agent authorized by this Article to exercise its powers are
declared to be issued for a public purpose and to be public instrumentalities.
These obligations are exempt from all State, county, and municipal taxation or
assessment, direct or indirect, general or special, whether imposed for the
purpose of general revenue or otherwise, excluding income taxes on the gain
from the transfer of the obligations, and franchise taxes. The interest on the
obligations is not subject to taxation as income. (1935,
c. 456, s. 26; 1953, c. 907; 1973, c. 695, s. 7; 1977, c. 784, s. 5; 1995, c.
46, s. 17; 2015-264, s. 16(i).)

§ 157-26.1. Exemption from
real estate licensure requirements.

The authority and the regular
salaried employees of the authority shall be exempt from the requirements of
Chapter 93A of the General Statutes as provided in G.S. 93A-2(c)(8). (1999-409, s. 2.)

§ 157-27. Reports.

The authority shall at least
once a year file with the mayor of the city a report of its activities for the
preceding year, and shall make any recommendations with reference to any
additional legislation or other action that may be necessary in order to carry
out the purposes of this Article. (1935, c. 456, s. 27.)

§ 157-28. Restriction on
right of eminent domain; right of appeal preserved; investigation by Utilities
Commission.

Notwithstanding any finding of
public convenience and necessity, either in general or specific, by the terms
of this Article, the right of eminent domain shall not be exercised unless and
until a certificate of public convenience and necessity for such project has
been issued by the Utilities Commission of North Carolina, and the proceedings
leading up to the issuing of such certificate of public convenience and
necessity, and the right to appeal therefrom shall be as now provided by law
and said rights are hereby expressly reserved to all interested parties in said
proceedings. In addition to the powers now granted by law to the Utilities
Commission of North Carolina, the said Utilities Commission is hereby vested
with full power and authority to investigate and examine all projects set up or
attempted to be set up under the provisions of this Article and determine the
question of the public convenience and necessity for said project. (1935, c. 456, s. 28.)

§ 157-29. Rentals; tenant
selections; and summary ejectments.

(a) It is hereby
declared to be the policy of this State that each housing authority shall
manage and operate its housing projects in an efficient manner so as to enable
it to fix the cost of dwelling accommodations for persons of low income at the
lowest possible rates consistent with its providing decent, safe, and sanitary
dwelling accommodations. No housing authority may construct or operate its
housing projects so as to provide revenues for other activities of the city.

(b) In the operation or
management of housing projects, portions of projects, or other housing
assistance programs for persons of low income, an authority shall at all times
observe the following duties with respect to rentals and tenant selection:

(1) It may rent or lease
dwelling accommodations set aside for persons of low income only to persons who
lack the amount of income that is necessary (as determined by the housing
authority undertaking the project) to enable them, without financial
assistance, to live in decent, safe, and sanitary dwellings, without
overcrowding; and

(2) It may rent or lease
dwelling accommodations to persons of low income only at rentals within the
financial reach of such persons.

a. Not less than forty
percent (40%) of the families admitted to its public housing program from its
waiting list in its fiscal year shall be extremely low-income families with
incomes at or below thirty percent (30%) of the area median income. For
purposes of this section, this shall be known as the "basic targeting
requirement".

b. To the extent
provided in sub-subdivisions c. and d. of this subdivision, the admission of
extremely low-income families to its Section 8 voucher program during the same
fiscal year shall be credited against the basic targeting requirement. For
purposes of this section, "Section 8" refers to Section 8 of the U.S.
Housing Act of 1937 as amended.

c. If admissions of
extremely low-income families to its Section 8 voucher program during its
fiscal year exceed the seventy-five percent (75%) minimum targeting
requirement for its Section 8 voucher program, the excess shall be credited
against its basic targeting requirement for the same fiscal year.

d. The fiscal year
credit for Section 8 voucher program admissions that exceeded the minimum
Section 8 voucher program targeting requirement shall not exceed the lower of
any of the following:

1. Ten percent (10%) of
its waiting list admissions during its fiscal year.

2. Ten percent (10%) of
waiting list admissions to its Section 8 tenant-based assistance program during
its fiscal year.

3. The number of
qualifying low-income families who, during the fiscal year, commence occupancy
of its public housing units that are located in census tracts with a poverty
rate of thirty percent (30%) or more. For purposes of this sub-sub-subdivision,
qualifying low-income family means a low-income family other than an extremely
low-income family.

(4a) Its targeting
requirement for tenant-based assistance shall ensure that not less than seventy-five
percent (75%) of the families admitted to its tenant-based voucher program from
its waiting list during its fiscal year shall be extremely low-income families
with incomes at or below thirty percent (30%) of the area median income.

(c) An authority may
terminate or refuse to renew a rental agreement for a serious or repeated
violation of a material term of the rental agreement such as (i) failure to
make payments due under the rental agreement, if such payments were properly
and promptly calculated according to applicable HUD regulation, whether or not
such failure was the fault of the tenant, (ii) failure to fulfill the tenant
obligations set forth in 24 C.F.R. Section 966.4(f) or other applicable
provisions of federal law as they may be amended from time to time, or (iii)
other good cause. Except in the case of failure to make payments due under a
rental agreement, fault on the part of a tenant may be considered in
determining whether good cause exists to terminate a rental agreement.

(d) The receipt or
acceptance of rent by an authority, with or without knowledge of a prior
default or failure by the tenant under a rental agreement, shall not constitute
a waiver of that default or failure unless (i) the authority expressly agrees
to such waiver in writing, or (ii) within 120 days after obtaining knowledge of
the default or failure, the authority fails either to notify the tenant that a
violation of the rental agreement has occurred or to exercise one of the
authority's remedies for such violation.

(e) In any summary
ejectment action wherein a housing authority alleges that a tenant's lease has
been terminated because the tenant, a household member, or a guest has engaged
in a criminal activity that threatens the health and safety of others or the
peaceful enjoyment of the premises by others, or has engaged in activity
involving illegal drugs, as defined in 24 C.F.R. § 966.4, the housing authority
may bring an action under Article 7 of Chapter 42 of the General Statutes. (1939, c. 150; 1985, c. 741,
s. 2; 1987, c. 464, s. 5; 1989, c. 272; 1995, c. 520, s. 1; 1997-473, s. 1;
2005-423, s. 8; 2006-219, s. 1; 2006-259, s. 39.)

§ 157-29.1. Fraudulent
misrepresentation.

(a) Any person whether
provider or recipient, or person representing himself as such, who willfully
and knowingly and with intent to deceive makes a false statement or
representation or who willfully and knowingly and with intent to deceive fails
to disclose a material fact and as a result of making a false statement or
representation or failing to disclose a material fact obtains, for himself or
another person, attempts to obtain for himself or another person, or continues
to receive housing assistance in the amount or value of not more than four
hundred dollars ($400.00) is guilty of a Class 1 misdemeanor.

(b) Any person whether
provider or recipient, or person representing himself as such, who willfully
and knowingly and with intent to deceive makes a false statement or
representation or who willfully and knowingly and with intent to deceive fails
to disclose a material fact and as a result of making a false statement or
representation or failing to disclose a material fact obtains, for himself or
another person, or continues to receive housing assistance in the amount or
value of more than four hundred dollars ($400.00) is guilty of a Class I
felony.

The creation and establishment
of housing authorities under the provisions of Chapter 456, Public Laws of
1935, as amended by Chapter 2, Public Laws of 1938, Extra Session, and as
further amended by Chapter 150, Public Laws of 1939, and any additional amendments
thereto, known as the Housing Authorities Law [G.S. 157-1 et seq.], together
with all proceedings, acts and things heretofore undertaken, performed or done
with reference thereto, are hereby validated, ratified, confirmed, approved and
declared legal in all respects, notwithstanding any want of statutory authority
or any defect or irregularity therein. (1939, c. 118, s. 1; 1941, c. 62, s. 1.)

§ 157-31. Contracts,
agreements, etc., validated.

All contracts, agreements,
obligations and undertakings of such housing authorities heretofore entered
into relating to financing or aiding in the development, construction,
maintenance or operation of any housing project or projects or to obtaining aid
therefor from the United States Housing Authority, including (without limiting
the generality of the foregoing) loan and annual contributions contracts and
leases with the United States Housing Authority, agreements with municipalities
or other public bodies (including those which are pledged or authorized to be
pledged for the protection of the holders of any notes or bonds issued by such
housing authorities or which are otherwise made a part of the contract with
such holders of notes or bonds) relating to cooperation and contributions in
aid of housing projects, payments (if any) in lieu of taxes, furnishing of
municipal services and facilities, and the elimination of unsafe and insanitary
dwellings, and contracts for the construction of housing projects, together
with all proceedings, acts and things heretofore undertaken, performed or done
with reference thereto, are hereby validated, ratified, confirmed, approved and
declared legal in all respects, notwithstanding any want of statutory authority
or any defect or irregularity therein. (1939, c. 118, s. 2; 1941, c. 62, s. 2.)

All proceedings, acts and
things heretofore undertaken, performed or done in or for the authorization,
issuance, execution and delivery of notes and bonds by housing authorities for
the purpose of financing or aiding in the development or construction of a
housing project or projects, and all notes and bonds heretofore issued by
housing authorities are hereby validated, ratified, confirmed, approved and
declared legal in all respects, notwithstanding any want of statutory authority
or any defect or irregularity therein. (1939, c. 118, s. 3; 1941, c. 62, s. 3.)

§ 157-32.1. Other validation
of creation, etc.

The creation, establishment
and organization of housing authorities under the provisions of the Housing
Authorities Law (Chapter 456, Public Laws of 1935, as amended, codified as G.S.
157-1 et seq.), together with all proceedings, acts and things heretofore
undertaken or done with reference thereto, are hereby validated and declared
legal in all respects. (1943, c. 89, s. 1.)

§ 157-32.2. Other validation
of contracts, agreements, etc.

All contracts, agreements and
undertakings of such housing authorities heretofore entered into relating to
financing, or aiding in the development or operation of any housing projects,
including (without limiting the generality of the foregoing) loan and annual
contributions contracts, agency contracts and leases, agreements with
municipalities or other public bodies (including those which are pledged or
authorized to be pledged for the protection of the holders of any notes or
bonds issued by such housing authorities or which are otherwise made a part of
the contract with such holders of notes or bonds) relating to cooperation in
aid of housing projects, payments to public bodies in the State, furnishing of
municipal services and facilities and the elimination of unsafe and insanitary
dwellings, and contracts for the construction of housing projects, together
with all proceedings, acts and things heretofore undertaken or done with
reference thereto, are hereby validated and declared legal in all respects. (1943, c. 89, s. 2.)

§ 157-32.3. Other validation
of bonds and notes.

All proceedings, acts and
things heretofore undertaken or done in or for the authorization, issuance,
execution and delivery of notes and bonds by housing authorities for the
purpose of financing or aiding in the development or construction of a housing project
or projects, and all notes and bonds heretofore issued by housing authorities
are hereby validated and declared legal in all respects. (1943, c. 89, s. 3.)

§ 157-32.4. Further
validation of contracts, agreements, etc.

All contracts or agreements of
housing authorities heretofore entered into with the federal government or its
agencies, and with municipalities or others relating to financial assistance
for housing projects in which it was required that loans or advances shall bear
an interest rate in excess of six per centum (6%) per annum, or in which a
municipality or others had agreed to pay funds equal to the interest in excess
of six per centum (6%) per annum are hereby validated, ratified, confirmed,
approved and declared legal with respect to the payment of interest in excess
of six per centum (6%), and all things done or performed in reference thereto.
The housing authorities are hereby authorized to assume the full obligation of
the municipalities under the contracts or agreements with reference to interest
in excess of six per centum (6%), and to reimburse any municipality which has
made any interest payment under such contracts or agreements. (1971, c. 87, s. 2.)

§ 157-33. Notice, hearing and
creation of authority for a county.

Any 25 residents of a county
may file a petition with the clerk of the board of county commissioners setting
forth that there is a need for an authority to function in the county. Upon the
filing of such a petition such clerk shall give notice of the time, place and
purposes of a public hearing at which the board of county commissioners will
determine the need for an authority in the county. Such notice shall be given
at the county's expense by publishing a notice, at least 10 days preceding the
day on which the hearing is to be held, in a newspaper having a general
circulation in the county or, if there be no such newspaper, by posting such a
notice in at least three public places within the county, at least 10 days
preceding the day on which the hearing is to be held.

Upon the date fixed for said
hearing to be held upon notice as provided herein, an opportunity to be heard
shall be granted to all residents and taxpayers of the county and to all other
interested persons. After such a hearing, the board of county commissioners
shall determine (i) whether insanitary or unsafe inhabited dwelling
accommodations exist in the county and/or (ii) whether there is a lack of safe
or sanitary dwelling accommodations in the county available for all the
inhabitants thereof. In determining whether dwelling accommodations are unsafe
or insanitary, the board of county commissioners shall take into consideration
the following: the physical condition and age of the buildings; the degree of
overcrowding; the percentage of the land coverage; the light and air available
to the inhabitants of such dwelling accommodations; the size and arrangement of
the rooms; the sanitary facilities; and the extent to which conditions exist in
such buildings which endanger life or property by fire or other causes.

If it shall determine that
either or both of the above enumerated conditions exist, the board of county
commissioners shall adopt a resolution so finding (which need not go into any
detail other than the mere finding) and shall thereupon either (i) determine
that the board of county commissioners shall itself constitute and act ex
officio as an authority or (ii) appoint, as hereinafter provided, not less than
five nor more than nine commissioners to act as an authority. Said authority shall
be a public body and a body corporate and politic upon the completion of the
taking of the following proceedings:

The commissioners shall
present to the Secretary of State an application signed by them, which shall
set forth (without any detail other than the mere recital)

(1) That a notice has
been given and public hearing has been held as aforesaid, that the board of
county commissioners made the aforesaid determination after such hearing and
appointed them as commissioners;

(2) The name, and
official residence of each of the commissioners, together with a certified copy
of the appointment evidencing their right to office, the date and place of
induction into and taking oath of office, and that they desire the housing
authority to become a public body and a body corporate and politic under this
Article;

(3) The term of office
of each of the commissioners, except where the authority consists of the board
of county commissioners ex officio;

(4) The name which is
proposed for the corporation; and

(5) The location of the
principal office of the proposed corporation.

The application shall be
subscribed and sworn to by each of said commissioners before an officer
authorized by the laws of the State to take and certify oaths, who shall
certify upon the application that he personally knows the commissioners and
knows them to be the officers as asserted in the application, and that each
subscribed and swore thereto in the officer's presence. The Secretary of State
shall examine the application and if he finds that the name proposed for the
corporation is not identical with that of a person or of any other corporation
of this State or so nearly similar as to lead to confusion and uncertainty he
shall receive and file it and shall record it in an appropriate book of record
in his office.

When the application has been
made, filed and recorded, as herein provided, the authority shall constitute a
public body and a body corporate and politic under the name proposed in the
application; the Secretary of State shall make and issue to the said
commissioners, a certificate of incorporation pursuant to this Article, under
the seal of the State, and shall record the same with the application.

If the board of county
commissioners, after a hearing as aforesaid, shall determine that neither of
the above enumerated conditions exist, it shall adopt a resolution denying the
petition. After three months shall have expired from the date of the denial of
any such petitions, subsequent petitions may be filed as aforesaid and new
hearings and determinations made thereon.

In any suit, action or
proceeding involving the validity or enforcement of, or relating to any
contract of the authority, the authority shall be conclusively deemed to have
been established in accordance with the provisions of this Article upon proof
of the issuance of the aforesaid certificate by the Secretary of State. A copy
of such certificate, duly certified by the Secretary of State, shall be
admissible in evidence in any such suit, action or proceeding, and shall be conclusive
proof of the filing and contents thereof. (1941, c. 78, s. 4; 1943, c. 636, s. 7; 1969, c. 785,
s. 1; 1981, c. 21, s. 1.)

§ 157-34. Commissioners and
powers of authority for a county.

The commissioners of a housing
authority created for a county may be appointed and removed by the board of
county commissioners of the county in the same manner as the commissioners of a
housing authority created for a city may be appointed and removed by the mayor;
provided, that the board of county commissioners may determine in the case of
any authority for its county that the board of county commissioners itself
shall constitute and act ex officio as the authority. The board of county
commissioners may at any time by resolution or ordinance increase or decrease
the membership of an authority, within the limitations prescribed in G.S. 157-33.
Except as otherwise provided herein, each housing authority created for a
county and the commissioners thereof shall have the same functions, rights,
powers, duties and limitations provided for housing authorities created for
cities and the commissioners of such housing authorities: Provided, that for
such purposes the term "mayor" or "council" as used in the
housing authorities law and any amendments thereto shall be construed as
meaning "board of county commissioners," the term "city
clerk" as used therein shall be construed as meaning "clerk of the
board of county commissioners" and the term "city" as used
therein shall be construed as meaning "county" unless a different
meaning clearly appears from the context: Provided, further, that a housing
authority created for a county shall not be subject to the limitations provided
in subdivision (4) of G.S. 157-29 of the housing authorities law with respect
to housing projects for farmers of low income. (1941, c. 78, s. 4; 1969, c. 785, s. 2; 1981, c. 21,
s. 2.)

§ 157-35. Creation of
regional housing authority.

If the board of county
commissioners of each of two or more contiguous counties having an aggregate
population of more than 60,000 by resolution declares that there is a need for
one housing authority to be created for all of such counties to exercise powers
and other functions herein prescribed for a housing authority in such counties,
a public body corporate and politic to be known as a regional housing authority
for all of such counties shall (after the commissioners thereof file an
application with the Secretary of State as hereinafter provided) thereupon
exist for and exercise its powers and other functions in such counties; and
thereupon any housing authority created for any of such counties shall cease to
exist except for the purpose of winding up its affairs and executing a deed to
the regional housing authority as hereinafter provided: Provided, that the
board of county commissioners shall not adopt a resolution as aforesaid if
there is a county housing authority created for such county which has any bonds
or notes outstanding unless first, all holders of such bonds and notes consent
in writing to the substitution of such regional housing authority in lieu of
such county housing authority on all such bonds and notes; and second, the
commissioners of such county housing authority adopt a resolution consenting to
the transfer of all the rights, contracts, obligations, and property, real and
personal, of such county housing authority to such regional housing authority
as hereinafter provided: Provided, further, that when the above conditions are
complied with and such regional housing authority is created and authorized to
exercise its powers and other functions, all rights, contracts, agreements,
obligations, and property, real and personal, of such county housing authority
shall be in the name of and vest in such regional housing authority, and all
obligations of such county housing authority shall be the obligations of such
regional housing authority and all rights and remedies of any person against such
county housing authority may be asserted, enforced, and prosecuted against such
regional housing authority to the same extent as they might have been asserted,
enforced, and prosecuted against such county housing authority. When any real
property of a county housing authority vests in a regional housing authority as
provided above, the county housing authority shall execute a deed of such
property to the regional housing authority which thereupon shall file such deed
in the office provided for the filing of deeds: Provided, that nothing
contained in this sentence shall affect the vesting of property in the regional
housing authority as provided above.

The board of county
commissioners of each of two or more said contiguous counties shall by
resolution declare that there is a need for one regional housing authority to
be created for all of such counties to exercise powers and other functions
herein prescribed in such counties, if such board of county commissioners finds
(and only if it finds)

(1) Insanitary or unsafe
dwelling accommodations exist in the area of its respective county and/or there
is a lack of safe or sanitary dwelling accommodations in the county available
for all the inhabitants thereof and

(2) That a regional
housing authority for the proposed region would be a more efficient or
economical administrative unit than a housing authority for an area having a
smaller population to carry out the purposes of the housing authorities law and
any amendments thereto, in such county.

In determining whether
dwelling accommodations are unsafe or insanitary, the board of county
commissioners shall take into consideration the following: the physical
condition and age of the buildings; the degree of overcrowding; the percentage
of land coverage; the light and air available to the inhabitants of such
dwelling accommodations; the size and arrangement of the rooms; the sanitary
facilities; and the extent to which conditions exist in such buildings which
endanger life or property by fire or other causes.

If it shall determine that
both (1) and (2) of the above enumerated conditions exist, the board of county
commissioners shall adopt a resolution so finding (which need not go into any
detail other than the mere finding). After the appointment, as hereinafter
provided, of the commissioners to act as the regional housing authority, said
authority shall be a public body and a body corporate and politic upon the
completion of the taking of the following proceedings:

The commissioners shall
present to the Secretary of State an application signed by them, which shall
set forth (without any detail other than the mere recital)

(1) That the boards of
county commissioners made the aforesaid determination and that they have been
appointed as commissioners;

(2) The name, and official
residence of each of the commissioners, together with a certified copy of the
appointment evidencing their right to office, the date and place of induction
into and taking oath of office, and that they desire the housing authority to
become a public body and a body corporate and politic under this Article;

(3) The term of office
of each of the commissioners;

(4) The name which is
proposed for the corporation; and

(5) The location of the
principal office of the proposed corporation.

The application shall be
subscribed and sworn to by each of said commissioners before an officer
authorized by the laws of the State to take and certify oaths, who shall
certify upon the application that he personally knows the commissioners and
knows them to be the officers as asserted in the application, and that each
subscribed and swore thereto in the officer's presence. The Secretary of State
shall examine the application and if he finds that the name proposed for the
corporation is not identical with that of a person or of any other corporation
of this State or so nearly similar as to lead to confusion and uncertainty he
shall receive and file it and shall record it in an appropriate book of record
in his office.

When the application has been
made, filed and recorded, as herein provided, the authority shall constitute a
public body and a body corporate and politic under the name proposed in the
application; the Secretary of State shall make and issue to the said
commissioners, a certificate of incorporation pursuant to this Article, under
the seal of the State, and shall record the same with the application.

In any suit, action or
proceeding involving the validity or enforcement of, or relating to any
contract of the regional housing authority, the regional housing authority
shall be conclusively deemed to have been established in accordance with the
provisions of this Article upon proof of the issuance of the aforesaid
certificate by the Secretary of State. A copy of such certificate, duly
certified by the Secretary of State, shall be admissible in evidence in any
such suit, action or proceeding, and shall be conclusive proof of the filing
and contents thereof. (1941, c. 78, s. 4; 1943, c. 636, ss. 3, 7; 1998-217, s. 20.)

§ 157-36. Commissioners of
regional housing authority.

(a) The board of county
commissioners of each county included in a regional housing authority shall
appoint one person as a commissioner of such authority, and each such
commissioner to be first appointed by the board of county commissioners of a
county may be appointed at or after the time of the adoption of the resolution
declaring the need for such regional housing authority or declaring the need
for the inclusion of such county in the area of operation of such regional
housing authority. When the area of operation of a regional housing authority
is increased to include an additional county or counties as provided in this
Article, the board of county commissioners of each such county shall thereupon
appoint one additional person as a commissioner of the regional housing
authority. The board of county commissioners of each county shall appoint the
successor of the commissioner appointed by it.

(b) The commissioners
of the regional housing authority shall appoint as a commissioner at least one
person who is directly assisted by the authority unless the authority's rules
require that the person be elected by other persons who are assisted by the
authority. However, there shall be no requirement to appoint such a person if
the authority: (i) operates less than 300 public housing units, (ii) provides
reasonable notice to all resident advisory boards within the authority's area
of operation of the opportunity for at least one person who is directly
assisted by the authority to serve as a commissioner, and (iii) within a
reasonable time after receipt of the notice by the resident advisory boards,
has not been notified of the intention of any such person to serve. The
commissioners of the regional housing authority shall appoint successors of the
commissioner appointed by them and shall fill any vacancies. A certificate of
the appointment signed by the chair of the commissioners of the regional
housing authority shall be conclusive evidence of the due and proper selection
of the commissioner. If the commissioner directly assisted by the regional
housing authority ceases to receive such assistance, the commissioner's office
shall be abolished and another person who is directly assisted by the regional
housing authority shall be appointed by the commissioners of the regional
housing authority.

(c) No commissioner who
is also a person directly assisted by the regional housing authority shall be
qualified to vote on matters affecting his or her official conduct or matters
affecting his or her own individual tenancy, as distinguished from matters
affecting tenants in general.

(d) If any county is
excluded from the area of operation of a regional housing authority, the office
of the commissioner of such regional housing authority appointed by the board
of county commissioners of such county shall be thereupon abolished. If the
person appointed as a commissioner under subsection (b) of this section resides
in a county that is excluded from the authority's area of operation, the office
of that commissioner shall be abolished and another person residing within the
authority's area of operation shall be appointed.

(e) A certificate of
the appointment of any commissioner signed by the chair of the board of county
commissioners (or the appointing officer) shall be conclusive evidence of the
due and proper appointment of such commissioner.

(f) If the area of
operation of a regional housing authority consists at any time of an even
number of counties, except as provided in subsection (g) of this section, the
Governor shall appoint one additional commissioner to such regional housing
authority whose term of office shall be as herein provided for a commissioner
of a regional housing authority, except that such term shall end at any earlier
time that the area of operation of the regional housing authority shall be
changed to consist of an odd number of counties. The Governor shall likewise
appoint each person to succeed such additional commissioner. A certificate of
the appointment of any such additional commissioner shall be signed by the Governor
and filed with the Secretary of State. A copy of such certificate, duly
certified by the Secretary of State, shall be conclusive evidence of the due
and proper appointment of such additional commissioner.

(g) If the membership
of the board of commissioners consists of an even number as a result of the
appointment of a person who is directly assisted by the regional housing
authority, the Governor shall appoint one additional commissioner to the
authority whose term of office shall be as herein provided for a commissioner
of an authority, except that such term shall end at any earlier time that the
area of operation of the authority shall be changed to consist of an even
number of counties. A certificate of the appointment shall be signed and filed as
provided in subsection (f) of this section. The Governor shall appoint
successors to the additional commissioner and shall fill any vacancies.

(h) The commissioners
of a regional housing authority shall be appointed for terms of five years
except that all vacancies shall be filled for the unexpired terms. Each
commissioner shall hold office until his or her successor has been appointed
and has qualified.

(i) For inefficiency
or neglect of duty or misconduct in office, a commissioner of a regional
housing authority may be removed by the appointing authority. The commissioner
shall have been given a copy of the charges against him or her at least 10 days
prior to the hearing thereon and shall have had an opportunity to be heard in
person or by counsel.

(j) The commissioners
appointed as aforesaid shall constitute the regional housing authority, and the
powers of such authority shall be vested in such commissioners in office from
time to time.

(k) The commissioners
of a regional housing authority shall elect a chair from among the
commissioners and shall have power to select or employ such other officers and
employees as the regional housing authority may require. A majority of the
commissioners of a regional housing authority shall constitute a quorum of such
authority for the purpose of conducting its business and exercising its powers
and for all other purposes. (1941, c. 78, s. 4; 1943, c. 636, s. 4; 1999-146, s.
2.)

§ 157-37. Powers of regional
housing authority.

Except as otherwise provided
herein, a regional housing authority and the commissioners thereof shall,
within the area of operation of such regional housing authority, have the same
functions, rights, powers, duties and limitations provided for housing authorities
created for cities or counties and the commissioners of such housing
authorities: Provided, that for such purposes the term "mayor" or
"council" as used in the Housing Authorities Law and any amendments
thereto shall be construed as meaning "board of county
commissioners," the term "city clerk" as used therein shall be
construed as meaning "clerk of the board of county commissioners" and
the term "city" as used therein shall be construed as meaning
"county" unless a different meaning clearly appears from the context:
Provided, further, that a regional housing authority shall not be subject to
the limitations provided in subdivision (4) of G.S. 157-29 of the Housing
Authorities Law with respect to housing projects for farmers of low income.
Except as otherwise provided in this Article, all the provisions of law
applicable to housing authorities created for counties and the commissioners of
such authorities shall be applicable to regional housing authorities and the
commissioners thereof. (1941, c. 78, s. 4; 1943, c. 636, s. 6.)

§ 157-38. Rural housing
projects.

Housing authorities created
for counties and regional housing authorities are specifically empowered and
authorized to borrow money, accept grants and exercise their other powers to
provide housing for farmers of low income. In connection with such projects,
such housing authorities may enter into such lease or purchase agreements,
accept such conveyances and rent or sell dwellings forming part of such
projects to or for farmers of low income, as such housing authority deems
necessary in order to assure the achievement of the objectives of this Article.
Such leases, agreements or conveyances may include such covenants as the
housing authority deems appropriate regarding such dwellings and the tracts of
land described in any such instrument, which covenants shall be deemed to run
with the land where the housing authority deems it necessary and the parties to
such instrument so stipulate. Nothing contained in this section shall be
construed as limiting any other powers of any housing authority. (1941, c. 78, s. 4.)

§ 157-39. Housing
applications by farmers.

The owner of any farm
operated, or worked upon, by farmers of low income in need of safe and sanitary
housing may file an application with a housing authority of a county or a
regional housing authority requesting that it provide for a safe and sanitary dwelling
or dwellings for occupancy by such farmers of low income. Such applications
shall be received and examined by housing authorities in connection with the
formulation of projects or programs to provide housing for farmers of low
income. (1941,
c. 78, s. 4.)

§ 157-39.1. Area of operation
of city, county and regional housing authorities.

(a) The boundaries or
area of operation of a housing authority created for a city shall include said
city and the area within 10 miles from the territorial boundaries of said city,
but in no event shall it include the whole or a part of any other city, except
as otherwise provided herein. Notwithstanding the previous sentence, a housing
authority created for a city may operate and perform any of its lawful
functions within any other city that has a common boundary with a city creating
an authority when requested to do so by resolution of the governing body of
such other city. The area of operation or boundaries of a housing authority
created for a county shall include all of the county for which it is created
and the area of operation or boundaries of a regional housing authority shall
include (except as otherwise provided elsewhere in this Article) all of the
counties for which such regional housing authority is created and established:
Provided, that a county or regional housing authority shall not undertake any
housing project or projects within the boundaries of any city unless a
resolution shall have been adopted by the governing body of such city (and also
by any housing authority which shall have been theretofore established and
authorized to exercise its powers in such city) declaring that there is a need
for the county or regional housing authority to exercise its power within such
city: Provided, that the jurisdiction of any rural housing authority to which
the Secretary of State has heretofore issued a certificate of incorporation
shall extend to within a distance of one mile of the town or city limits of any
town or city having a population in excess of 500, located in any county now or
hereafter constituting a part of the territory of such rural housing authority:
Provided, further, that this provision shall not affect the jurisdiction of any
city housing authority to which the Secretary of State has heretofore issued a
certificate of incorporation. A housing authority created for a county may operate
and perform any of its lawful functions anywhere within the municipal
boundaries of any city located in whole or in part within the county for which
it is created, when requested to do so by resolution of the governing body of
such city.

(b) In any county in
which a city housing authority has been established, but where there are
portions of the county in which the city is located which are more than 10
miles from the territorial boundaries of the city, the city housing authority
is authorized to operate in areas of the county beyond such limit, which are
not within another city, upon the adoption of a joint resolution by the city
council and the board of county commissioners. Such joint resolution must find
that in such additional area, that insanitary or unsafe inhabited dwelling
accommodations exist in such area or there is a shortage of safe or sanitary
dwelling accommodations in such county available to persons of low income at
rentals they can afford. A public hearing on such resolution need be held only
by the board of county commissioners.

(c) A joint resolution
adopted under subsection (b) of this section may, in lieu of the appointment
provisions of G.S. 157-5, provide that the board of commissioners of the
housing authority shall be composed of nine members, with a number (not less
than five) to be appointed by the mayor, and the remainder to be appointed by
the board of county commissioners. Such housing authority commissioners shall
be subject to removal by the appointing person or board under the procedural
requirements of G.S. 157-8. (1943, c. 636, s. 5; 1961, c. 200, s. 2; 1979, 2nd
Sess., c. 1108, ss. 1, 2; 1993, c. 458.)

§ 157-39.2. Increasing area
of operation of regional housing authority.

The area of operation or
boundaries of a regional housing authority shall be increased from time to time
to include one or more additional contiguous counties not already within a
regional housing authority if the board of county commissioners of each of the
counties then included in the area of operation of such regional housing
authority, the commissioners of the regional housing authority and the board of
county commissioners of each such additional county or counties each adopts a
resolution declaring that there is a need for the inclusion of such additional
county or counties in the area of operation of such regional housing authority.
Upon the adoption of such resolutions, any county housing authority created for
any such additional county shall cease to exist except for the purpose of
winding up its affairs and executing a deed to the regional housing authority
as hereinafter provided. Provided, however, that such resolutions shall not be
adopted unless the commissioners of such county housing authority adopt a
resolution consenting to the transfer of all the rights, contracts, bonds, and
property, real and personal, of such county housing authority to such regional
housing authority as hereinafter provided: Provided, further, that when the
above condition is complied with and the area of operation of such regional
housing authority is increased to include such additional county, as
hereinabove provided, all rights, contracts, bonds, and property, real and
personal, of such county housing authority shall be in the name of and vested
in such regional housing authority, all contracts and bonds of such county
housing authority shall be the contracts and bonds of such regional housing
authority and all rights and remedies of any person against such county housing
authority may be asserted, enforced, and prosecuted against such regional
housing authority to the same extent as they might have been asserted,
enforced, and prosecuted against such county housing authority.

When any real property of a
county housing authority vests in a regional housing authority as provided
above, the county housing authority shall execute a deed of such property to
the regional housing authority which thereupon shall file such deed in the
office provided for the filing of deeds: Provided, that nothing contained in
this sentence shall affect the vesting of property in the regional housing
authority as provided above.

The board of county
commissioners of each of the counties in the regional housing authority, the
commissioners of the regional housing authority and the board of county
commissioners of each such additional county or counties shall by resolution
declare that there is a need for the inclusion of such county or counties in
the area of operation of the regional housing authority, only if:

(1) The board of county
commissioners of each such additional county or counties find that insanitary
or unsafe inhabited dwelling accommodations exist in such county or there is a
shortage of safe or sanitary dwelling accommodations in such county available
to persons of low income at rentals they can afford, and

(2) The board of county
commissioners of each of the counties then included in the area of operation of
the regional housing authority, the commissioners of the regional housing authority
and the board of county commissioners of each such additional county or
counties find that the regional housing authority would be a more efficient or
economical administrative unit if the area of operation of the regional
housing authority is increased to include such additional county or counties. (1943, c. 636, s. 5; 1971, c.
431, s. 1.)

§ 157-39.3. Decreasing area
of operation of regional housing authority.

The area of operation or
boundaries of a regional housing authority shall be decreased from time to time
to exclude one or more counties from such area if the board of county
commissioners of each of the counties in such area and the commissioners of the
regional housing authority each adopt a resolution declaring that there is a
need for excluding such county or counties from such area: Provided, that if
such action decreases the area of operation of the regional housing authority
to only one county, such authority shall thereupon constitute and become a
housing authority for such county, in the same manner as though such authority
were created, and constituted a public and corporate body for such county
pursuant to other provisions of this housing authority law, and the
commissioners of such authority shall be thereupon appointed as provided for
the appointment of commissioners of a housing authority created for a county.

The board of county
commissioners of each of the counties in the area of operation of the regional
housing authority and the commissioners of the regional housing authority shall
adopt a resolution declaring that there is a need for excluding a county or
counties from such area only if:

(1) Each such board of
county commissioners of the counties to remain in the area of operation of the
regional housing authority and the commissioners of the regional housing
authority find that, because of facts arising or determined subsequent to the
time when such area first included the county or counties to be excluded, the
regional housing authority would be a more efficient or economical
administrative unit if such county or counties were excluded from such area,
and

(2) The board of county
commissioners of each county or counties to be excluded and the commissioners
of the regional housing authority each also find that another housing authority
for such county or counties would be a more efficient or economical
administrative unit to function in such county or counties.

Nothing contained herein shall
be construed as preventing a county or counties excluded from the area of
operation of a regional housing authority, as provided above, from thereafter
being included within the area of operation of any housing authority in
accordance with this Article.

Any property held by a
regional housing authority within a county or counties excluded from the area
of operation of such authority as herein provided, shall, as soon as
practicable after the exclusion of said county or counties, respectively, be
disposed of by such authority in the public interest. (1943, c. 636, s. 5; 1971, c.
431, s. 2.)

§ 157-39.4. Requirements of
public hearings.

The board of county
commissioners of a county shall not adopt any resolution authorized by G.S. 157-35,
157-39.1, 157-39.2 or 157-39.3 unless a public hearing has first been held
which shall conform (except as otherwise provided herein) to the requirements
of this Housing Authorities Law for hearings to determine the need for a
housing authority of a county: Provided, that such hearings may be held by the
board of county commissioners without a petition therefor.

In connection with the
issuance of bonds, a regional housing authority may covenant as to limitations
on its right to adopt resolutions relating to the increase or decrease of its
area of operation. (1943,
c. 636, s. 5; 1979, 2nd Sess., c. 1108, s. 3.)

§ 157-39.5. Consolidated
housing authority.

If the governing body of each
of two or more municipalities (with a population of less than 500, but having
an aggregate population of more than 500) by resolution declares that there is
a need for one housing authority for all of such municipalities to exercise in
such municipalities the powers and other functions prescribed for a housing
authority, a public body corporate and politic to be known as a consolidated
housing authority (with such corporate name as it selects) shall thereupon
exist for all of such municipalities and exercise its powers and other
functions within its area of operation (as herein defined), including the power
to undertake projects therein; and thereupon any housing authority created for
any of such municipalities shall cease to exist except for the purpose of
winding up its affairs and executing a deed of its real property to the
consolidated housing authority: Provided, that the creation of a consolidated
housing authority and the finding of need therefor shall be subject to the same
provisions and limitations of this Housing Authorities Law as are applicable to
the creation of a regional housing authority and that all of the provisions of
this Housing Authorities Law applicable to regional housing authorities and the
commissioners thereof shall be applicable to consolidated housing authorities
and the commissioners thereof: Provided, further that the area of operation or
boundaries of a consolidated housing authority shall include all of the
territory within the boundaries of each municipality joining in the creation of
such authority together with the territory within 10 miles of the boundaries of
each such municipality, except that such area of operation may be changed to
include or exclude any municipality or municipalities (with its aforesaid
surrounding territory) in the same manner and under the same provisions as
provided in this Article for changing the area of operation of a regional
housing authority by including or excluding a contiguous county or counties:
Provided, further, that for all such purposes the term "board of county
commissioners" shall be construed as meaning "governing body"
except in G.S. 157-36, where it shall be construed as meaning "mayor"
or other executive head of the municipality, the term "county" shall
be construed as meaning "municipality," the term "clerk"
shall be construed as meaning "clerk of the municipality or officer with
similar duties," the term "region" shall be construed as meaning
"area of operation of the consolidated housing authority" and the
terms "county housing authority" and "regional housing
authority" shall be construed as meaning "housing authority of the
city" and "consolidated housing authority," respectively, unless
a different meaning clearly appears from the context.

The governing body of any such
municipality for which a housing authority has not been created may adopt the
above resolution if it first determines that there is a need for a housing
authority to function in said municipality, which determination shall be made
in the same manner and subject to the same conditions as the determination
required by G.S. 157-4 for the creation of a housing authority for a city:
Provided, that after notice given by the clerk (or officer with similar duties)
of the municipality, the governing body of the municipality may, without a
petition therefor, hold a hearing to determine the need for a housing authority
to function therein.

Except as otherwise provided
herein, a consolidated housing authority and the commissioners thereof shall,
within the area of operation of such consolidated housing authority have the
same functions, rights, powers, duties, privileges, immunities and limitations
as those provided for housing authorities created for cities, counties, or
groups of counties and the commissioners of such housing authorities, in the
same manner as though all the provisions of law applicable to housing
authorities created for cities, counties, or groups of counties were applicable
to consolidated housing authorities. (1943, c. 636, s. 5; 1961, c. 200, s. 3; 1965, c. 431,
s. 3.)

§ 157-39.6. Findings required
for authority to operate in municipality.

No governing body of a city or
other municipality shall adopt a resolution as provided in G.S. 157-39.1
declaring that there is a need for a housing authority (other than a housing
authority established by such municipality) to exercise its powers within such
municipality, unless a public hearing has first been held by such governing
body and unless such governing body shall have found in substantially the
following terms: (i) that insanitary or unsafe inhabited dwelling
accommodations exist in such municipality or that there is a shortage of safe
or sanitary dwelling accommodations in such municipality available to persons
of low income at rentals they can afford; and (ii) that these conditions can be
best remedied through the exercise of the aforesaid housing authority's powers
within the territorial boundaries of such municipality: Provided, that such
findings shall not have the effect of thereafter preventing such municipality
from establishing a housing authority or joining in the creation of a consolidated
housing authority or the increase of the area of operation of a consolidated
housing authority. The clerk (or the officer with similar duties) of the city
or other municipality shall give notice of the public hearing and such hearing
shall be held in the manner provided in G.S. 157-4 for a public hearing by a
council to determine the need for a housing authority in the city.

During the time that, pursuant
to these findings, a housing authority has outstanding (or is under contract to
issue) any evidences of indebtedness for a project within the city or other
municipality, no other housing authority may undertake a project within such
municipality without the consent of said housing authority which has such
outstanding indebtedness or obligation. (1943, c. 636, s. 5.)

§ 157-39.7. Meetings and
residence of commissioners.

Nothing contained in this
Housing Authorities Law shall be construed to prevent meetings of the
commissioners of a housing authority anywhere within the perimeter boundaries
of the area of operation of the authority or within any additional area where
the housing authority is authorized to undertake a housing project, nor to
prevent the appointment of any person as a commissioner of the authority who
resides within such boundaries or such additional area, and who is otherwise
eligible for such appointment under this Housing Authorities Law. (1943, c. 636, s. 5.)

§ 157-39.8. Agreement to sell
as security for obligations to federal government.

In any contract or amendatory
or superseding contract for a loan and annual contributions heretofore or
hereafter entered into between a housing authority and the federal government
with respect to any housing project undertaken by said housing authority, any
such housing authority is authorized to make such covenants (including
covenants with holders of bonds issued by such authority for purposes of the
project involved), and to confer upon the federal government such rights and
remedies, as said housing authority deems necessary to assure the fulfillment
of the purposes for which the project was undertaken. In any such contract, the
housing authority may, notwithstanding any other provisions of law, agree to
sell and convey the project (including all lands appertaining thereto) to which
such contract relates to the federal government upon the occurrence of such
conditions, or upon such defaults on bonds for which any of the annual
contributions provided in said contract are pledged, as may be prescribed in
such contract, and at a price (which may include the assumption by the federal
government of the payment, when due, of the principal of and interest on
outstanding bonds of the housing authority issued for purposes of the project
involved) determined as prescribed therein and upon such other terms and
conditions as are therein provided. Any such housing authority is hereby
authorized to enter into such supplementary contracts, and to execute such
conveyances, as may be necessary to carry out the provisions hereof.
Notwithstanding any other provisions of law, any contracts or supplementary
contracts or conveyances made or executed pursuant to the provisions of this
section shall not be or constitute a mortgage within the meaning or for the
purposes of any of the laws of the State. (1943, c. 636, s. 5.)